D&L Industries Inc. said Philippine Economic Zone Authority will grant fiscal incentives to its planned manufacturing facility within the 26-hectare First Industrial Township-Special Economic Zone in Batangas province.
D&L said in a disclosure to the stock exchange unit Natura Aeropack Corp. received a certificate of registration from Peza as an ecozone export enterprise to engage in the manufacturing of coconut oil fractions and coconut-based surfactants and downstream consumer products.
D&L will be entitled to incentives such as income tax holiday for a certain number of years, and tax and duty-free importation of raw materials and capital equipment.
It will also have to comply with the 50 percent export sales required for Filipino corporations in economic zones.
The NAC facility, which is scheduled to be commercially operational in 202, is expected to support the group’s growth expansion over the next 20 years.
The initiative is also part of the group’s strategic direction to expand the export business and focus on higher value and higher margin products.
NAC is 70 percent owned by Chemrez Technologies Inc. and 30 percent by Aero-Pack Industries Inc.
NAC facilities will be dedicated for the manufacture of coconut oil fractions, coconut-based surfactants and downstream consumer products that are sustainable, naturally-derived, mild and non-irritant. Product applications extend to health care, personal care, home care as well as baby care.
The Lao family, the majority shareholder of D&L, acquired the lot, where the planned manufacturing facility will be built.
The D&L Group plans to finance construction of the new facility through debt and internally-generated funds. The project is expected to generate about 700 new jobs, with construction and commissioning to be completed in 2021.
Share price of D&L on Thursday closed at P11.22, up 1.1 percent.