D&L Group to build new plants in Batangas ecozone

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D&L Industries, Inc. said on Thursday it is putting up new manufacturing facilities in Batangas as part of its expansion plans.

In a disclosure to the stock exchange, D&L said two of its units—D&L Premium Foods Corp. and Natura Aeropack Corp. —have submitted applications before the Philippine Economic Zone Authority (PEZA) for the registration of new facilities in a PEZA zone in Batangas.

The new facilities will sit in a 26-hectare area in First Industrial Township-Special Economic Zone in the said province.

The initiative is part of the group’s strategic direction to grow its export business and focus on higher value and higher margin products.


“Once registered with PEZA, D&L Premium Foods and Natura Aeropack will be required to meet the 50 percent export sales requirement for Filipino enterprises,” D&L said.

The 26-hectare lot was acquired by the property company of the Lao family and will be leased to the group.

D&L said it plans to finance the capital expenditure through debt and internally-generated funds.
Upon completion and operation by 2021, the new facilities are expected to generate 700 new jobs.

“The current operations in Metro Manila should experience no significant disruption,” D&L said.

“The planned expansion will position D&L Group to grow over the next 20 years. The group’s current utilization rate stands at 70 percent, allowing the group time to complete the expansion. The last major capacity build took place prior to the IPO of D&L in 2012,” it added.

D&L’s principal business activities include manufacturing of customized food ingredients, specialty raw materials for plastics, and oleochemicals for personal and home care use.

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