THE planned manufacturing facility of D&L Industries, Inc. (DNL) in Batangas will be entitled to incentives, after getting the green light from the Philippine Economic Zone Authority (PEZA).
In a disclosure to the stock exchange on Thursday, the listed firm said its unit D&L Premium Food Corp. (DLPF) received a certificate of registration as an Ecozone Export Enterprise for its factory will manufacture vegetable fats and oils, as well as specialty food ingredients.
The facility, which targets to commence operations in 2021, will stand inside the First Industrial Township- Special Economic Zone in Tanauan, Batangas. This is one of two factories the company is currently constructing to expand its capacity for the next 20 years. The other factory is being built for DNL’s unit, Natura Aeropack Corp.
As a PEZA-registered company, DLPF will be entitled to tax incentives such as an income tax holiday; tax and duty-free importation of raw materials, capital equipment and machinery; and exemption from expanded withholding tax.
The listed oleochemicals and plastics manufacturer is pouring in P8 billion for this capacity expansion, which also involves the construction of about 50 storage tanks sized up to 2,000 cubic meters each.
The facilities will allow DNL to triple its current capacity, and support the company’s target to grow its export business to about 50% of revenues by 2025.
Shares in DNL gained 0.97% or 10 centavos to close at P10.40 each at the stock exchange on Thursday. — Arra B. Francia