Shemberg moving operations to Indonesia

MANILA, Philippines - Shemberg Marketing Corp. and Shemberg Biotech, both owned by Cebuano businessman Benson Dakay, is planning to move its manufacturing operations from Cebu to Indonesia.

Dakay said Shemberg’s manufacturing operations would be relocated to three different sites pending the sale of Shemberg’s various properties totaling 25 hectares.

He said Shemberg is hoping to raise around P1.5 billion to relocate semi-refined kappa carageenan production to Indonesia; its semi-refined iota alcohol operations to Zamboanga and its refined pressed gel manufacturing operations to Carmen, Cebu.

The reason for the relocation, Dakay said, is to locate Shemberg’s operations near its raw material sources.

With Indonesia set to ban the export of cottonii seaweeds by 2012, Shemberg plans to relocate its semi-refined kappa carageenan production to Indonesia.

Similarly, the move to Zamboanga for Shemberg’s refined iota alcohol operations is to make manufacturing activities closer to the source of spinozum seaweed.

The move to Carmen, Cebu for the refined pressed gel manufacturing operations is due to the availability of water in the area.

Dakay said some 1,000 employes of Shemberg would be affected by the possible relocation. Hopefully, he said, most of the employes would agree to be relocated or be retired or terminated.

He said, all of Shemberg’s plans are dependent on the sale of its 25-hectare property in Cebu.

Dakay said several foreign groups, have expressed interest in the properties which is just 10 minutes away from the Mactan International Airport.

Dakay is hoping to get at least P30,000 per square meter for his various properties.

Meanwhile, Shemberg Marketing Corp. was bestowed an environmental award by Nestle Philippines Greening the Supply Chain Program.

The award is in recognition of Shemberg’s exemplary environmental programs that include wastewater treatment facility, energy reduction activities, water conservations, chemical reduction, as well as solid water and packaging materials reduction and recycling activities.