BOI OKs P109.5-M essential oil export producer’sproject
MANILA
– The Board of Investments (BOI) has approved the application for registration of Iba Botanicals Inc. as a new export producer of pure essential oils that will soon operate in Zam bal es.
Expected to start its commercial operation in January 2022, the project was registered under Republic Act 11534 or Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act based on the “Export Activities,” of the 2020 Investment Priorities Plan (IPP) as the transitional SIPP.
The project has a capacity of 35.6 metric tons or 35,688 kilograms per year.
The company employs organic farming techniques, and is in the process of securing a third party international organic certification.
It will engage in the production of export products, particularly essential oils from ylang-ylang, vetiver, and elemi species.
With its high potential for job creation, the firm is projected to generate a total of 430 jobs in its fifth year of operation.
The company will engage up to 200 workers directly from a community in the vetiver plantations located in San Juan, Zambales.
The country’s economy will reap the benefits of the project’s operation, as the projected output to the economy is PHP245.28 million.
The project is expected to reduce poverty incidence in Region 3 or Central Luzon, which ranked third among the regions with the highest unemployment rate at 8.8 percent as of September 2021.
As the pandemic has affected the employment of the Filipinos, the project will help in easing both through generation of jobs that will be brought during its construction and commercial operations.
Extensive Research and Development (R&D) has been conducted to develop the demand for the products by the firm, which includes the establishment of trail plantation areas in order for the sample product to be produced for testing and market devel opment .
Essential oils are aromatic essences extracted from plants, flowers, trees, fruits, bark, grasses and seeds, and are essential inputs used in the production of perfumery, personal and healthcare, pharmaceuticals, cosmetics, household care, food and beverage industries, among others.
In the Philippines, some of the common essential oils used in aromatherapy extracted from endemic plants in the country are ylang-ylang (cananga odorata), lemon grass, patchouli, vetiver, castor seeds (castor oil), pili, eucalyptus (mint), malunggay, sampaguita, sambong, and gi nger.
Exporting 100 percent of its total production to the United States, Europe, Asia, the project can ensue a smell of economic success, with the transformation of endemic agriculture products into higher value added products for export to global markets.
It will produce essential oils intended for export to the world market, such as to Asian countries like India, Thailand, Malaysia, and Singapore. (PR)