Chemrez temporarily shuts down plant

D&L Industries said its wholly owned subsidiary Chemrez Inc. temporarily suspended its plant operations in Bagumbayan, Quezon City which emitted unpleasant odor that spread to surrounding areas.

In a disclosure to the Philippine Stock Exchange, D&L said the vapor stemmed from the polymerization process at Chemrez’s polystyrene plant.

While the fumes are under control, Chemrez continues to spray water over the tank to dilute vapor and dissipate the odor, D&L said.

“As of 8 a.m., reports indicate the odor has continued to weaken,” it said.

Because of the incident, operations at the plant are currently suspended, possibly for two to three days. The plant is one of the six plants of D&L.

“The suspension will affect 35 percent of Chemrez’s production or about 10 percent of D&L’s total production,” D&L said.

D&L Industries noted that the impact on sales is likely negligible.

As of the first nine months, Chemrez contributed 33 percent and 32 percent to D&L’s revenues and net income, respectively.

D&L is on track to hitting its 2015 profit growth range of 15 percent to 18 percent.

A Filipino-owned company, D&L is engaged in product customization and specialization for the food, plastics, and aerosol industries. The company’s principal business activities include manufacturing of customized food ingredients, specialty raw materials for plastics, and oleochemicals for personal and home care use.

Established in 1963, D&L has the largest market share in each of the industries it serves, as well as longstanding customer relationships with the Philippines’ leading consumer and chemical companies. It was listed on the Philippine Stock Exchange in December 2012.

The company derives bulk of its business from the food industry and the rest from supplying raw materials for the durable goods sector.