D&L Industries Inc. aims to start the commercial operations of its Batangas plant in mid-2023 despite disruptions in supply chains.
In a disclosure on Monday, the Lao-owned food ingredients and plastics manufacturing firm said the Philippine Economic Zone Authority granted it an extension until the end of next year to begin operations of the Batangas plant in case of unforeseen delays amid the pandemic.
But D&L said it was committed to do so by the middle of 2023. This, as the listed company has been dealing with the late arrival of shipments from overseas suppliers, which can potentially affect construction of the facility.
“[While] the plant is substantially complete, some steps in the final stages are currently taking longer than expected. Nonetheless, the bulk of the work has been done and we are past the hardest part which was continuing with the construction during the COVID-19 lockdown,” D&L president and CEO Alvin Lao said.
The 16-hectare (ha) facility is located in the 26-ha First Industrial Township-Special Economic Zone in Batangas.
The new plant is seen to support D&L’s growth prospects, boosting its export business in the food and oleochemicals segment. It will also enable the company to manufacture downstream packaging.
“We are convinced that this plant comes at an opportune time given the strong demand for high value coconut-based products in the export market. With the limited manufacturing assets built over the past few years, as hampered by the pandemic, our Batangas plant puts us in a good position,” Lao said.
As of end-October, D&L had spent about P8.6 billion on the expansion project. Some P1.6 billion will be used until next year.
D&L grew its nine-month net income by 17 percent to P2.5 billion from P2.16 billion in the same period a year ago, driven by revenues from exports of coconut-based products and overall market recovery.
Lao previously said they were “possibly” on track to go beyond its 2018 record income this year with the expected surge in revenues because of the holiday season. It booked P3.2 billion in profits in 2018.
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