MANILA -- Chemical and food ingredient manufacturer D&L Industries Inc. has started the construction of its PHP8-billion expansion facility in Tanauan, Batangas, a project that will generate 700 new jobs over the next two years until 2020.
D&L president Alvin Lao said the expansion project, which sits on a 26-hectare property at the special economic zone, First Industrial Township (FIT), involves the construction of the plant-specific buildings, machineries, and equipment.
Lao said the project is expected to more than double the firm’s current capacity as it ramps up its export business and focuses on higher value and higher margin products.
“We are hoping more from our exports so that’s one reason why the expansion is being done in the PEZA (Philippine Economic Zone Authority) zone so that we can really cater to the growing export markets for our products,” he told reporters Wednesday.
D&L Industries aims to have its export business contributing half of its revenues by 2025.
As of third quarter of 2018, exports accounted for 23 percent of its revenues.
“We are always exploring new markets, we are always talking to customers in new locations. We need to keep working on our formulations, the kind of products they need. There is progress. In general, within Asia and a lot in Southeast Asia,” he added.
Lao said the capacity expansion in Batangas is in line with the company’s goals to sustain double-digit net income growth.
Meanwhile, D&L Industries is building two new plants –- one for food ingredients under D&L Premium Foods Corp., and an integrated facility to manufacture oleochemicals and downstream packaging under Natura Aeropack Corporation.
“The construction of over 50 storage tanks has already started, which can be as big as 2,000 cubic meters, (for the two plants),” Lao added.
The project construction and commissioning is scheduled for completion by 2021. (PNA)
