D&L Industries Inc., a manufacturer of food additives and specialty plastics and chemicals, has voluntarily suspended the operations of its polystyrene plant in Quezon City on Monday after nearby residents complained of foul odors.
In a statement, the company said the shuttered plant in Bagumbayan, Quezon City—one of six plants operated by D&L—emitted an unpleasant odor on Sunday at 1:48 p.m., which was from the vapor generated during a polymerization process.
“As of November 23, 6 a.m., fumes had been under control in the immediate vicinity. The company continues to spray water over the tank to dilute the vapor and dissipate the odor. [And] as of 8 a.m., reports indicate the odor has continued to weaken,” D&L said.
“In light of recent events, operations at this plant are currently suspended, which may likely be extended for two to three days,” it added.
The company said the temporary shutdown will affect 35 percent of the production of its subsidiary Chemrez Inc., which equates to about 10 percent of D&L’s total production.
Despite the impact on production, the company said the “impact on sales is likely negligible.”
Chemrez is a unit of D&L through its wholly owned subsidiary Chemrez Technologies Inc.
As of the first nine months of 2015, Chemrez Technologies contributed 33 percent and 32 percent to D&L’s revenues and net income, respectively.
D&L said net income increased by 9 percent in the nine months to September to P1.61 billion from P1.47 billion a year ago despite a 2-percent drop in revenues to P14.5 billion.
Capital spending budget for 2015 is within the range of “10 percent to 20 percent above” the actual spending of P284 million in 2014, which will amount to about P320 million to P330 million.
Established in 1963 and listed in December 2012, D&L has four main businesses: food raw materials, plastics (D&L Polymer and Colours Inc. and First in Colours Inc.), aerosols (Aero-Pack Industries Inc.), and oleochemicals and other specialty chemicals (Chemrez Technologies Inc.).