D&L Industries Inc. has resumed operations of its polystyrene plant in Bagumbayan, Quezon City after solving a leakage problem.
“The company expects a partial resumption of operations today, November 24, and a full resumption on Thursday, November 26,” D&L said in a disclosure to the Philippine Stock Exchange.
A publicly listed firm, D&L produces raw materials for food, specialty plastics, and chemicals.
“As of November 23, our reports indicated that fumes have fully dissipated and the odor has subsided dramatically in the surrounding areas,” the company added.
On Sunday at 1:48 p.m., the company reported that fumes were coming out of its Quezon City plant during a polymerization process, causing inconvenience to residents around the plant.
D&L started suspending operations on Monday, November 23. The suspension was expected to take toll on 35 percent of the production of its subsidiary Chemrez Inc., which accounts for about 10 percent of D&L’s total production.
The company said it is still investigating the cause of the stinky fumes.
“Initial findings suggest that the fumes emanated from the vents of a storage tank and that these were caused by heat generated by polymerization,” the company stated. “During the polymerization, fumes came out of the vapor relief valve installed on the roof of the storage tank.”
“As previously disclosed, the suspension of operations is likely to have negligible impact on sales of D&L Industries,” it added.
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 revenues and net income, respectively.
In the same nine months of the year, D&L saw net income increase by nine percent to P1.61 billion from P1.47 billion a year ago.
Revenues, on the other hand, edged down by two percent in January to September period to P14.5 billion, from P14.7 billion a year ago, as oleochemicals and aerosols suffered weak prices during the period.
Capital spending budget for 2015 is within the range of “10 to 20 percent above” the actual spending of P284 million in 2014, or about P320 million to P330 million.
Established in 1963 and listed at the stock exchange 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.).
Kristyn Nika M. Lazo