Picop to shut down Oct 31

Picop Resources Inc. is the latest casualty in a growing list of corporate closures caused by the flood of lower-priced imports.

In a statement to the Philippine Stock Exchange, Picop corporate information officer Vicsmarte Ubalde said the company will be shutting down its various operations effective Oct. 31, 2001.

"The reason cited are the low prices of competing products, being imported at dumped prices and the delayed approval by the Department of Environment and Natural Resources of the company’s annual operating plan which prevents the company from access to its wood raw materials," Ubalde said.

He added the shutdown is expected to affect 3,000 direct employees and 5,000 workers indirectly involved in its wood, pulp mill and allied operations.

Picop, formerly Paper Industries Corporation of the Philippines, operates its pulp and paper mill and wood plantation in Bislig, Surigao del Sur. Once Southeast Asia’s largest integrated wood and paper milling company, Picop was listed in 1973 and transformed into a holding firm in 1997 as it ventured into particleboard manufacturing and palm oil plantation.

Last year, Picop generated total revenues of 2.422 billion but has remained in the red with net losses of P215.352 million. – Conrado Diaz Jr.