Unilever PHL starts building its biggest distribution center

THE LOCAL unit of consumer goods giant Unilever has started construction of a mega distribution center in Cabuyao, Laguna, as it anticipates continued growth in consumer demand for its personal care, food and home care products in the Philippines.

In a statement on Monday, Unilever Philippines said the 13.7-hectare distribution center, its largest in the country, is expected to be fully operational by October.

The facility will support the distribution and transport of products from manufacturing sites in Cavite and Paco, Manila. The Cavite and Paco factories are located 33 kilometers and 35 kilometers away, respectively, from the Cabuyao distribution center.

With the distribution center in Cabuyao, Unilever Philippines said potential delays arising from port congestion in Manila can also be avoided since the facility is also accessible to ports in Batangas for vessels bound for Visayas and Mindanao.

“Building a mega distribution center is a key strategy to achieve Unilever Philippines’ growth trajectory for the next three years. As a purpose-driven company, it allows us to streamline our operations, accelerate delivery of goods, create economies of scale, and generate jobs in the local market. This is a landmark development for us as we mark our 90th year of doing business in the Philippines,” Benjie Yap, Unilever Philippines chairman, was quoted as saying in a statement.

The distribution center will house 130,000 pallets and 97 loading docks. It will also have paperless warehouse management systems and safety-compliant storage systems.

“The continued growth of the Philippine economy, backed by strong domestic consumption and a vibrant retail market, opens a lot of possibilities for Unilever. Despite global uncertainty, we remain optimistic regarding our presence in the Filipino home. Our expansion is indicative of our continued commitment to invest in the health, hygiene, and well-being of Filipinos,” Mr. Yap said.

The fast-moving consumer goods company continues to broaden its reach in retail for personal care, food, and home care products in the Philippines.

In 2015, Unilever said it will invest around € 100 million in the Philippines over the next six years. Under the expansion program, Unilever committed to build new facilities, as well as upgrade existing equipment to boost its manufacturing output.