PH weighs Cocochem sale as European demand grows

The government is now weighing whether it should push through with plans to sell United Coconut Chemicals Inc. (Cocochem) amid renewed global demand for coconut-based products, Agriculture Secretary Francisco Tiu Laurel Jr. said Monday.

During an ocular inspection of Cocochem facilities in San Pascual, Batangas, Tiu Laurel said the Department of Agriculture (DA) is now looking at the possibility of having the state hold on to the asset, as European demand for coconut derivatives is gaining traction.

“We want to see for ourselves whether it still makes sense for the government to continue operating this chemicals and oleo fats factory given the rising demand for coconut products, particularly in Europe,” he said.

This comes as the government, through the Land Bank of the Philippines, aims to raise at least P2.82 billion from the offer of 682 million common shares of Cocochem. Proceeds are intended to support coconut farmers.

The sale could also pave the way for private investors to revive or repurpose the asset given the shifting market conditions.

Cocochem was established in 1981 by former President Ferdinand Marcos Sr. and Ambassador Eduardo Cojuangco Jr., and was once the largest coconut chemicals and oleo fats factory in Southeast Asia.

It shipped products to the United States, Europe, Japan, Korea, China, and other Southeast Asian countries in 1986. It transitioned to a facilities-based enterprise in 2014.

The firm currently generates income mainly through land leases, storage tank and warehouse rentals, power distribution, wastewater treatment, pier and weighbridge operations, dockage fees, water supply, and housing rentals. Its complex also houses a private jetty capable of handling 35,000-deadweight-ton vessels. — RSJ, GMA Integrated News