Unilever mulls $120-M expansion in PH

Unilever, the world's leading consumer goods manufacturer, has proposed a $ 120 million investment over a six-year period to expand its Philippine manufacturing operations and ensure profitability by adopting sustainable programs under the inclusive business model.

Data from the Board of Investments ( BOI) showed that the planned $ 120 million investments would be used to upgrade Unilever's manufacturing operations in the country. At present, Unilever Philippines has a main manufacturing facility in Paco, Manila.

Of the $120 million planned investments, $90 million would be alloted for the acquisition and installation of new manufacturing equipment as the company seeks to adapt new technologies to increase production capacities by 30 percent from the current 100,000 tons by 2020.

Unilever plans to adapt new tech- nologies for its food, personal care and home care operations.

For food, the company plans to acquire new twin shaft millers, move to new fat handling technology, automate material handling and traceability, and high-speed cubing line of 800 to 1200 rpm.

For its personal care division, Unilever shall implement patented micosheet technology and install sonolators.

The document showed that Unilever would increase its asset base with the purchase of additional 129 assets, upgrade 33 existing assets, and retire 7 existing assets.

By 2020, Unilever shall have 12 processing lines, upgraded 9 existing processing lines and retire 7 lines. It has existing 16 processing lines.

For its filling operations, the company shall have installed 60 filling lines and upgraded 20 existing lines.

For its end of product automation, the company plans to purchase and install 58 new end- of-line units and upgrade four existing ones. The company now operates four end of line units.

Based on the document, it was hinted that Unilever could be a candidate as an enterprise under the “Inclusive Business” program of the BOI.

Inclusive business is a private sector approach that, keeping its for-profit nature, contributes to poverty reduction through the inclusion of low income communities in the value chain of companies' core business as suppliers, distributors, retailers, or customers.

The document stated that inspired by Unilever’s global leadership, “the local management is in the midst of seriously redefining what it is to be a sustainable business.”

The Unilever Sustainable Living Plan (USLP) is aimed at ensuring the company’s long-term profitability while reducing the its environmental footprint and increasing its positive social impact.

The USLP goals including helping billions of people to take steps in improving their health and well-being, have the environmental impact or footprint of its products, by reducing its energy and water use and waste; and to source all agricultural raw materials sustainably and have a positive impact in the livelihood of millions of farmers worldwide.

In so doing, Unilever subscribes to Inclusive Business to contribute to poverty reduction through the inclusion of the marginalized community sectors in the value chain, whether as producers, suppliers, customers or consumers.

In the Philippines, the multinational giant is already sourcing locally grown Tamarind for its Knorr Sinigang Mix and Ube for the Ube Selecta Ice Cream.

The company believes that it should work on sustainable sourcing of raw agricultural materials not just for its own security of supply, but because this provides the highest opportunity and potential in making a big difference in the lives of people, particularly small landholders and farmers.

With majority of the country’s population still dependent on agriculture, Unilever seeks to pursue new ventures and projects

that should include and benefit more farmers. On environment, Unilever has been involved in the management of solid waste particularly of postconsumer wastes such as flexible packaging/plastic sachet wrappers.

On health and well- being, Unilever said its various brands have taken initiatives like conducting seminars on the simple act of proper handwashing, ensuring clean and germ free homes, feeding modules and nutritional enhancement program.

Earlier, the BOI launched its “Inclusive Business” initiative as a complement to President Aquino’s inclusive growth thrust.

The BOI, however, is still crafting the guidelines on what would qualify as an Inclusive Business model that it could be eligible for government assistance not necessarily in terms of fiscal incentives but also government intervention and policy reforms.

In terms of tax incentives, the BOI grants income tax holiday for a maximum of 8 eight years and zero duty on imported capital equipment.