Agriculture Secretary Francisco Tiu Laurel Jr. led an inspection of United Coconut Chemicals Inc. (Cocochem) on Monday as the government reviews whether to proceed with a long-planned sale of the producer amid growing global demand for coconut-based products.
The fact-finding mission precedes a policy decision on the future of the factory, which was once a dominant player in the regional market. Tiu Laurel said the government is evaluating if it remains viable to continue operating the chemicals and oleo fats facility, citing particularly strong interest from European markets.
Through Land Bank of the Philippines, the government is offering 682,000,000 common shares of the company, known as Cocochem, with a target to raise at least P2.82 billion. Officials intend to use the proceeds to support coconut farmers, while a sale could provide private investors the opportunity to revive or repurpose the facility to meet current market conditions.
Established in 1981 by then-President Ferdinand Marcos Sr. and Ambassador Eduardo Cojuangco Jr., Cocochem was previously the largest coconut chemicals factory in Southeast Asia. It pioneered the regional production of fatty alcohols using German-designed Lurgi technology and utilized a private jetty capable of handling 35,000-deadweight-ton vessels for its export operations. The facility shut down in 2012 after record-high coconut oil prices eroded its competitiveness against Southeast Asian rivals.
