D&L defers start of commercial ops of its Batangas facility to May 2022

Listed specialty chemicals and food ingredients manufacturer D&L Industries Inc. has deferred the start of commercial operations of its P8-billion manufacturing plant in Batangas to May next year due to the COVID-19 pandemic.

“The earliest start of commercial operations (SCO) for D&L Industries’ Batangas plant will be moved to May 2022 following an SCO extension granted by the Board of the Philippine Economic Zone Authority (PEZA) to D&L Premium Foods Corp (DLPF) during its July 23, 2021 meeting,” D&L said in a disclosure to the Philippine Stock Exchange.

D&L said DLPF, a wholly-owned subsidiary of D&L Industries which will manufacture various food ingredients to cater to the company’s growing export business, was originally slated for commercial operations by October 2021.

“However, in consideration of the challenges and delays encountered due to the recent spike in COVID-19 cases and subsequent reimposition of enhanced community quarantine (ECQ) and modified enhanced community quarantine (MECQ), as well as shipping delays for equipment and machineries for the said plant, PEZA has granted an SCO extension to January 2023,” the company said.

With this, another wholly-owned D&L subsidiary Natura Aeropack Corp. - which will manufacture coconut oleochemicals for various consumer care products - will be the first plant to operate in the production facility in Batangas.

Natura Aeropack will start its commercial operations in May 2022 as originally planned.

"While the COVID-19 pandemic and various mobility restrictions have caused challenges in the completion of our Batangas plant, we remain committed to this project," said D&L president and CEO Alvin Lao.

"We see ever-growing opportunities in relevant industries in the new normal that we can tap into with this new plant," Lao added.

D&L’s plant expansion project sits on a 26-hectare property in First Industrial Township - Special Economic Zone in Batangas.

The company has so far spent about P4.5 billion for the project. Remaining capex to be spent this year and in 2022 stands at about P3.5 billion.

The company earlier announced it plans to do a maiden bond offering to fund the remaining capex for this expansion.

“Our existing capacity is still sufficient to serve requirements in the near term, as such the extension in the SCO should have no material impact on current operations,” Lao said.—AOL, GMA News