D&L unit’s facility gets green light from PEZA

A SUBSIDIARY of D&L Industries, Inc. secured the approval from Philippine Economic Zone Authority (PEZA) to set up a manufacturing facility in Batangas.

D& L, in a disclosure to the stock exchange on Thursday, said Natura Aeropack Corp. (NAC) received a certificate of registration as an ecozone export enterprise from PEZA.

The PEZA approval means D&L will be entitled to incentives such as income tax holiday for a certain number of years, and tax and duty-free importation of raw materials and capital equipment. It will also have to comply with the 50% required export sales required for Filipino corporations in economic zones.

The facility, slated to be commercially operational in 2021, will be located at the First Industrial Township- Special Economic Zone in Batangas.

NAC will engage in the manufacturing of coconut oil fractions and coconut- based surfactants and downstream consumer products.

“The NAC facility is part of the expansion plans of the D&L Group, which will position the group to grow in the next 20 years,” the listed company said.

The construction of new manufacturing plants in Batangas is part of the D& L Group’s strategic direction to grow the export business and focus on higher value and higher margin products.

D& L’s export business comprises 25% of overall revenues.

The expansion program will also accommodate the demand from new contracts.

“Expanding to the new site will help our export business. So 50% of our business coming from exports, it will be something we will be able to achieve not just with our existing business, but also with our expansion,” D& L President and Chief Executive Officer Alvin D. Lao had said.

D&L expects increased export sales as the company enters new markets in the Asia- Pacific region, such as China, Hong Kong, Japan, and Indonesia.

D&L booked a 15% increase in earnings in the July to September period to P771 million, as revenues likewise increased 27% to P7.2 billion for the three-month period.

Shares in D& L rose 12 centavos or 1.08% to close at P11.22 apiece on Wednesday. —