Lapanday Foods won’t rebuild packaging plant burned by NPA

Posted on June 15, 2017

DAVAO CITY -- The Lorenzo family-owned Lapanday Foods Corp. (LFC) has decided not to revive its plant for packaging materials located here, which was burned down by the communist New People’s Army (NPA) on April 29.

Lapanday’s plant for packaging materials, built in 2004 at the First Mindanao Industrial Park in Mandug, Davao City will not be revived. -- WWW.LAPANDAY.COM
In a statement, LFC said it has informed the regional office of the Department of Labor and Employment that it will formally shut down its packaging plant on July 9 and that separation pay will be distributed to about 100 affected employees.

LFC said while it “has the prerogative not to pay their separation due to this serious business reversal, which the Labor Code allows and existing jurisprudence on the matter support, the management of Lapanday, on humanitarian considerations, decided nevertheless to grant separation pay to all its regular employees.”

The plant, built in 2004 at the First Mindanao Industrial Park in Mandug, Davao City, had an annual capacity to process 45,000 metric tons (MT) of paper, making about 45 million boxes, which were used for LFC’s fresh agricultural exports as well as supplying other producers. It also manufactured plastic packaging products such as vacuum bags and plastic strips at a volume of about 1,000 MT per year.

In an earlier statement, the company said the reconstruction of the box and plastic plants, among the firm’s biggest investments in the city, would require around P2 billion and could take two to three years to complete.

LFC, which also has a banana plantation in another part of the city that was also attacked by the NPA the same time the plant was burned, was the 7th top taxpayer in Davao.

LFC is one of the country’s major banana and pineapple producers, with operations in various parts of Mindanao. -- Carmelito Q. Francisco