Shemberg to spend P300M for early retirement package

MANILA, Philippines - Due to its modernization and plans of transferring one of its plants in Indonesia, Shemberg Marketing Corporation (SMC) is going to spend about P200 million to P300 million for the early retirement program of about 1,000 employees.

SMC president and chief executive officer (CEO) Benson U. Dakay announced that the plan will kick off as soon as the company will be able to sell its 18-hectare property in Mandaue, which is the current location of SMC headquarter plant and offices.

The Shemberg property in Pakna-an Mandaue, along the north highway is part of the total 25-hectare property which is now being offered to several interested buyers.

Dakay said one prospective buyer, showed interest to make the area as an Information Technology Park.

He hopes that the negotiation will be finalized before the end of this year, so Shemberg will be able to start its relocation and expansion plans.

Shemberg hopes to generate at least P5 billion from the property sales, and will spend the money for its three future plan, which includes the relocation of two plants to Zamboanga and Carmen, and the Indonesia expansion plan.

 Each plant that will be relocated will incur the company at least P1.5 billion, Dakay said.

The Carmen plant relocation will process the high-end refined Iota carrageenan processing, that are mostly used in toothpaste processing, and skin and teeth whitening ingredients.

The Zamboanga relocation will take care of the cotonii carageenan production, which is usually used as food additive, and other mainstream application.

Because of the shortage of (cappa) seaweed specie in the Philippines, Shemberg has finally decided to open a plant in Indonesia, because of its rich supply of this kind of seaweed specie.

According to Dakay its very expensive to import this kind of specie from Indonesia, and it is much practical for the company to eventually set up a physical plant there.

The relocation program of the company will also include the modernization and improvement of the company’s operation machinery heavily using technical and updated machines.

Thus, Dakay said reduction of personnel was decided. Although, these affected workers are also given option to transfer to other department, “if they still want to stay with the company.”

However, Dakay assured that the package each employee will be receiving is enough for them to start a small business.

At present, Shemberg employs over 2,000 people.