The Philippine Economic Zone Authority (PEZA) has given the subsidiary of D&L Industries a “pioneering status” for being the first company in the Philippines to manufacture and produce specialty polymers and color compounds for export.
The industry pioneer is D&L Polymer and Colours (DLPC).
Specialty polymers and color compounds are raw materials, also called engineered polymers, which are tailor made to each customer’s specifications. These are primarily used in the manufacture of insulation for automotive wirings and accessories.
According to D&L, DLPC is the leading automotive wiring compounder and the only non-Japanese company to supply the Japanese global wire harness industry in the Philippines. After review and evaluation, DLPC merited an upgrade from non-pioneering to pioneering by PEZA, even extending its Income Tax Holiday (ITH) entitlement from four years to six years. The agreement was signed by DLPC officials and PEZA Director General Lilia De Lima.
With one bonus year of ITH and pioneering status, DLPC will continue to enjoy paying zero corporate income until 2016. Beyond that, DLPC will be paying an income tax of 5 percent on gross income in lieu of all national and local taxes, imposts or fees. The ITH is expected to have an impact on the after-tax profitability of D&L Industries, which effectively owns 100 percent of DLPC.
“With the ITH, we intend to plow resources back into beefing up DLPC’s manufacturing and R&D [research and development]capabilities, especially with new businesses coming in,” said DLPC Managing Director Lester Lao.
PEZA is the government’s primary agency for the promotion of investments in export-oriented manufacturing and service industries.
DLPC announced a week ago that it has secured a partnership with international firm NatureWorks for the modification and compounding of starch-based IngeoTM resins.