D&L expands manufacturing facilities
The D&L Group is building new manufacturing facilities to double its existing capacity.
“This is part of the expansion plans of the group,” said D&L president Alvin Lao.
D&L Premium Foods Corp. and Natura Aeropack Corp. submitted applications with the Philippine Economic Zone Authority (PEZA) for the registration of new manufacturing facilities in the economic zone in Batangas.
D&L Premium Foods is a wholly-owned subsidiary of Oleo-fats Inc. (OFI), which cawas ters primarily to OFI’s growing export business.
The planned facilities will sit on a 26-hectare property in First Industrial Township – Special Economic Zone in Batangas.
The expansion project is expected to generate at least 700 new jobs with the construction targeted to be completed in 2021.
Lao said this would position D&L Group for continued growth over the next 20 years.
The group’s current utilization rate stands at 70 percent, allowing it time to complete its expansion on time. The last major capacity build took place prior to the IPO of D&L in 2012.
“This initiative is part of the group’s strategic direction to grow the export business and focus on higher value and higher margin products. Once registered with PEZA, D&L Premium Foods and Natura will be required to meet the 50 percent export sales requirement for Filipino enterprises,” Lao said.
D&L Industries will file the necessary disclosures in accordance with the guidelines and rules of the Philippine Stock Exchange, once further pertinent details are available.
It plans to finance its capital expenditures through debt and internally-generated funds.
Meanwhile, Natura’s facilities are dedicated for the manufacture of coconut oil fractions, coconut-based surfactants and downstream consumer products which are sustainable, naturally-derived, mild and non-irritant. Product applications extend to health care, personal care, home care as well as baby care.
Natura is 70 percent owned by Chemrez Technologies Inc. and 30 percent owned by Aero-Pack Industries.