D&L says new Batangas plant to boost its capacity

Listed chemicals and specialty food ingredient manufacturer D&L Industries Inc. is expecting a boost in its earnings and output following the operationalization of its new production plant in Tanauan, Batangas.

In a disclosure to the Philippine Stock Exchange on Wednesday, D&L said its new plant in Batangas, which began commercial operations in July, will more than double the company’s existing manufacturing capacity.

“The plant that we have built is not just another plant... our Batangas plant will elevate the company to operate on a whole new level,” said D&L President and CEO Alvin Lao.

“Similar to what we have seen with the various plants that we have built over the past 60 years, the commercial operations of a new plant will mean incremental expenses that may affect near-term income. This is part and parcel of putting up a new plant, as what we have done multiple times. We have a lot of confidence that even though it may take time, this plant will be a huge benefit for the company,” said Lao.

The D&L chief said the new plant would open for the company “new markets, higher value-added products, and deeper innovations.”

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

The new plant will operate under D&L’s wholly-owned subsidiaries, Natura Aeropack Corporation (NAC) and D&L Premium Foods Corp. (DLPF).

The new plant will be providing customized solutions and simplify customers’ supply chain.

The company said the new facility will mainly cater to D&L’s growing export businesses in the food and oleochemicals segments.

D&L said the company will have more capability to manufacture downstream packaging, thus allowing the company to capture a bigger part of the production chain.

The new plant will also be instrumental in D&L’s goal of putting the Philippines on the map as a quality manufacturing hub for sustainable, natural, and organic products, it added.

As of the first half of 2023, D&L booked a net income of P1.24 billion, down 28% year-on-year amid the lingering effects of high inflation and generally cautious consumer sentiment.

“Moving forward, as the Batangas plant ramps up operations, its incremental revenues should offset the costs,” said Lao. —VAL, GMA Integrated News