D&L sees opportunities on ‘US-China trade tensions’

Food ingredients and industrial chemicals maker D&L Industries Inc. is seeing a silver lining amid a brewing tariff war between the US and China.

In a statement, D&L president and CEO Alvin Lao said the company’s pricing structure and its ability to adjust selling prices protects the company from wild swings in forex and commodity prices. 

“In our view, the apparent trade tensions between the US and China present opportunities for companies like us to supply to companies who cannot source from either the US or China. Our new plant in Batangas gives us the capacity and capability to cater to bigger export customers,” Lao said,

“This puts us in a prime position to capture opportunities arising from the evolving international trade environment,” he said.

US President Donald Trump has imposed a 10% tariff on all Chinese imports, triggering Beijing to retaliate with levies on certain US goods.

Lao said that D&L's export sales, which constitute about 31% of total sales, are rooted in products where the company holds a competitive edge. 

These include highly customized products with significant R&D input, which are not easily replicable, and products leveraging the Philippines' natural resources, particularly coconut-based products, which benefit from D&L's strong supply chain.

“The products that we export are generally distinguished by their unique functional and technical properties, making D&L a go-to supplier for many global customers. With an aggressive export strategy and enhanced production capabilities, we maintain our guidance of reaching 50% export sales contribution to total sales over the medium term,” Lao said.

In the first nine months of 2024, D&L saw a 38% year-over-year increase in export sales, driven by the exploration of new markets and a surge in global demand for coconut-based products, recognized for their sustainable attributes. —AOL, GMA Integrated News