British firm Unilever PLC, one of the world’s largest fast-moving consumer goods (FMCG) companies, will start commercial operation this December of its P4.8 billion expansion in the Philippines, which is expected to become one of Unilever PLC’s biggest Personal Care factories globally.
BOI Managing Head Ceferino S. Rodolfo, who is also undersecretary at the Department of Trade and Industry, said the project has been approved at the BOI Board level. The expansion project was among the major highlights during President Ferdinand Marcos Jr.'s visit to Brussels.
Rodolfo further noted that the state-of-the-art facility will start commercial operation this December 2022 with the formal inauguration of the plant expected in the first quarter of 2023.
The investment will translate to addition 88,000 metric tons or 15 percent production capacity increase in personal care or hygiene products, such as haircare, skincare and deodorant products.
“We expressed to President Marcos our long-term commitment to sustainable and responsible growth in the country and we are optimistic that our new P4.7 billion investment in a future-fit personal care factory in Cavite will contribute to the Philippine manufacturing sector’s competitiveness as we employ highly advanced technologies, with the potential to qualify the facility for the World Economic Forum’s ‘Advanced Fourth Industrial Revolution Lighthouse’,” said Benjie Yap, Unilever Philippines Inc. chairman. The same technology is being used in other Unilever global facilities
In addition, Rodolfo said that Unilever Philippines already operates its local plants using 100 percent renewable energy as sustainability is at the core of the company’s plan in the country of making it a hub for sustainable technology.
“Unilever’s investment is in line with Philippines’ vision to be a hub for sustainable manufacturing products powered by renewable energy,” he said.
Rodolfo noted that Unilever has been expanding its operations in the country. Two years ago, Unilever invested P1 billion for their ice cream facility. Rodolfo said that the company’s previous investments were made by their suppliers but the P4.7 billion expansion is really by Unilever.
In fact, 95 percent of its products sold in the Philippines are also produced in their local plants in the country. The Philippines is also one of its top 10 markets globally.
Originally, the company’s personal care products are being produced in its Manila plant specifically in Paco, Manila. With the development in Manila shifting towards commercial and residential use and considering its limited area, the Manila plant will be closed and UPI will have a new, bigger, and more technologically advanced plant in Cavite, with additional 15% production capacity. Ninety five percent (95%) of ALL Unilever’s products in the domestic market is made in the Philippines.
Aside from manufacturing, Unilever also operates a shared service center in the country, their second largest in the Asian region. As a support facility, the Philippines’ shared service center handles finance and accounting, IT procurement, and data analytics.
“They are confident in terms of the growth prospects of the Philippines and stability of the policy environment and the move towards greater use of renewable energy,” he added.
The company, with global revenues of around US$60 billion annually, has recognized the need for comprehensive solutions to address plastic pollution in the country. As one of the leading consumer goods companies, it has already introduced initiatives to spur community action toward reducing plastic pollution by advocating zero-waste management which is focused mainly on plastic packaging waste utilization. It has a community-based sachet recovery program, along with office and factory solid waste management programs, packaging innovations, as well as collaboration with industry coalitions. Unilever has pledged to have all of its packaging reusable, recyclable, and compostable by 2025.