MANILA, Philippines — Consumer goods giant P&G Philippines has expanded its operations in the country as it inaugurated its P864 million production line for diapers to be exported to South Korea and Vietnam.
In a statement, the Department of Trade and Industry (DTI) said Trade Secretary Alfredo Pascual and P&G Philippines president and general manager Raffy Fajardo led the ribbon-cutting ceremony for the new production line at the plant in Cabuyao, Laguna.
“This P864-million investment is the direct outcome of a critical economic reform that the Philippine economic team has pushed for since the previous administration – Republic Act 11534 or the Corporate Recovery and Tax Incentives for Enterprises Act or CREATE,” Pascual said.
He said the firm applied for registration as an export producer of the new manufacturing line for Pampers pull-up pants in September last year under the CREATE Law.
Among the benefits under the CREATE are the duty-free importation of capital equipment, raw materials, or accessories.
“The diaper products from this new line will eventually be exported and sold to Korea and Vietnam,” Pascual said.
He said the new diaper manufacturing line would generate revenues for the government and create direct and indirect jobs.
In addition, the new production line is seen to link the Philippines to the global value chain for manufacturing and distributing diapers across Asia.
As the Senate recently concurred the ratification of the Regional Comprehensive Economic Partnership, formalizing the country’s participation in the agreement, Pascual said the company can leverage the mega free trade deal to enhance its access to the Asia-Pacific regional market, as well as its linkages to the global value chain.
Fajardo said the new Pampers production line shows the company’s continued commitment to produce superior products and further support the country’s economy.
“P&G’s commitment to continuous improvement and innovation of our supply chain technology has enabled us to provide products of superior quality and value. Together with the anticipated boost in sales for the company, this project will also help the economy and boost the country’s export output. P&G has and will always believe in Filipino talent, and this project will also facilitate significant upskilling for employees working on the line,” he said.
Aside from Pampers, P&G also produces laundry detergents Ariel and Tide, dishwashing liquid Joy, fabric conditioner Downy, disposable period pads Whisper, and antibacterial soap Safeguard for the local and export market at its Cabuyao plant.