The start of commercial operations of D&L Industries Inc.’s Natura Aeropack Corp. (NAC) plant in Batangas has been postponed to January 2023 due to the COVID-19 Omicron variant surge earlier this year and logistics problems.
In a disclosure to the Philippine Stock Exchange on Friday, D&L —a listed chemicals and food ingredients manufacturer— said its NAC plant’s start of commercial operations was moved to 2023 instead of May this year “in consideration of the recent turn of events such as the Omicron-related surge in COVID-19 cases early this year, global port congestion and supply chain disruptions.”
The company also cited the Philippine Economic Zone Authority’s (PEZA) “longer-than-expected processing of registration and licenses.” PEZA granted the start of commercial operations extension to January 2023.
NAC is a wholly-owned subsidiary of D&L that will manufacture coconut oleochemicals for various consumer care products.
D&L president and CEO Alvin Lao said the delay would have no impact on the company’s operations.
“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.
D&L said both NAC and its other subsidiary D&L Premium Foods Corp. (DLPF), both located in its Batangas site, would start commercial operations concurrently.
DLPF will manufacture food ingredients to cater to D&L’s export business.
“While the pandemic has posed challenges to the completion of our Batangas plant, this expansion is coming at an opportune time given the strong demand for high value coconut-based products in the export market,” Lao said.
D&L said that it has already spent around P6.2 billion on its Batangas manufacturing facility, with P1.8 billion in capital expenditures remaining. —VBL, GMA News
Commercial operations of D&L s Batangas plant moved to January 2023
Source: News Panda Philippines
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