D&L INDUSTRIES, Inc. has moved the start of commercial operations of its Batangas plant to mid-2023 from early 2023 due to delayed permits and shipments.
“As mentioned during our third-quarter briefing, while the plant is substantially complete, some steps in the final stages are currently taking longer than expected,” D&L President and Chief Executive Officer Alvin D. Lao said in a disclosure.
The company said there were delays in processing permits and certifications, as well as in the arrival of shipments from overseas suppliers affected by the global chain supply disruptions.
“While Philippine Economic Zone Authority (PEZA) has granted an extension until the end of 2023, providing allowances in case of a force majeure, D&L’s management is committed to start commercial operations by mid-2023,” the company said.
Mr. Lao said the delay will not have any material impact on the company’s current operations as its current capacity is still enough to cover its requirements in the near term.
The plant will sit on a 26-hectare property in First Industrial Township – Special Economic Zone in Batangas. The plant will be part of the first phase of the company’s expansion which will cover 16 hectares of the PEZA area.
As of end-October, the company spent has around P8.6 billion for the project, which leaves it with around P1.6 billion in capital expenditure budget until early next year.
Once completed, the plant is seen to help the company develop more high value-added coconut-based products and penetrate new international markets.
“It will mainly cater to D&L’s growing export business in the food and oleochemicals segment. It will add the capability to manufacture downstream packaging, thus allowing the company to capture a bigger part of the production chain,” D&L Industries said.
In the nine-month period, the company posted a record-high income of P2.54 billion, up by 17.4% from P2.16 billion in 2021.
Its topline during the period rose by 57.5% to P33.9 billion from P21.53 billion revenues a year ago.
D&L Industries engages in product customization and specialization for food, chemicals, plastics and consumer products original design manufacturer industries. — Justine Irish D. Tabile