D&L Industries Inc., the country’s top specialty food ingredients and oleochemicals producer, has started commercial operations for its P10.5 billion Batangas plant marked by the issuance of its first invoice on Monday, July 10.
D&L Industries' starts commercial operations of its new plant in First Industrial Township - Special Economic Zone in Batangas
“Today, we celebrate an important milestone. After facing several challenges in the form of a pandemic, strict lockdowns during the construction, and global supply chain bottlenecks, our next generation facility in Batangas has finally started commercial operations,” said D&L President and CEO Alvin Lao.
D&L’s Batangas plant sits on a 26-hectare property in First Industrial Township - Special Economic Zone in Batangas. It has successfully moved into a soft-opening status with several production lines already up and running.
The firm expects the full commercial operations in the next couple of months after the final fine-tuning works on the remaining parts of the plant have been completed.
D&L Industries President and CEO Alvin Lao
“This marks the beginning of an exciting journey as we venture into new global markets and manufacture higher value added products. Our Batangas plant puts us in a good position as global demand returns,” Lao added.
The new plant will enable D&L to move a step closer to its customers by providing customized solutions and simplifying their supply chain, which is of high importance given ongoing global logistical challenges.
It will also be instrumental in D&L’s goal of putting the Philippines on the map as a quality manufacturing hub for sustainable, natural and organic products.
D&L is launching a full range of shelf-ready products for its export customers, made from coconut oil, for the personal and baby care, cosmetics and beauty care, household cleaning, health and nutrition, and food and vegetable oils categories that are sustainable, natural, and organic.
The company is gearing up towards launching a full range of shelf-ready products for its export customers, made from coconut oil, for the personal and baby care, cosmetics and beauty care, household cleaning, health and nutrition, and food and vegetable oils categories that are sustainable, natural, and organic.
This initiative offers a plug-and-play solution for global brand owners who are looking to beef up their sustainable product offerings.
With the new capabilities that the Batangas plant will bring, D&L aims to offer turnkey solutions to customers that are both economically and environmentally friendly.
D&L envisions empowering brands globally to make a meaningful shift towards high impact sustainability initiatives in the manufacturing of their products by giving them the option to buy direct from source.
The direct from source approach simply means converting raw materials into finished goods in the country of raw material origin, instead of going through multi-leg production stages which usually happen across different locations in the globe.
This naturally translates into simpler logistics, less wastage, lower costs, higher efficiency, and as such, significantly cutting down the carbon footprint (C02) of the entire supply chain.
D&L’s Batangas plant expands the manufacturing capabilities of the company’s food, oleochemicals, and consumer products ODM segments.
It operates under wholly-owned subsidiaries Natura Aeropack Corporation (NAC) and D&L Premium Foods Corp (DLPF). This plant allows the vertical integration of sourcing, formulation, packaging, OEM/ODM, and export capabilities, enabling D&L to offer a one stop shop, direct from source manufacturing solutions to global brands.
Being in a Philippine Export Zone Authority (PEZA) location, D&L’s Batangas plant is required to maintain at least 50 percent export revenue contribution to be able to take advantage of PEZA tax incentives. As such, the said facility is focused on developing new markets.
Coconut oil continues to gain traction globally as a sustainable, natural, and organic substitute for many petroleum or palm-oil based applications.
DENSO Corporation in Japan, is a leading supplier of advanced automotive technology, systems and components for all the world’s major automakers.
Thru DENSO’s globalization, one of its subsidiaries in more than 38 countries and regions worldwide was established in the Philippines on March 1995 at Carmelray Industrial Park 1, Canlubang, Calamba City, Laguna. It was named Philippine Auto Components, Inc. But on June 01, 2016 it was officially renamed DENSO Philippines Corporation.
The plant manufactures various automotive parts such as meter cluster, air-con, radiator, compressor, smart key and sonar sensor. It distributes aftermarket products: wiper blades, spark plugs, horn, CDI, relay, AC generator, bus air-con, AC service parts, Diesel service parts and accessories such as ionizer and hand scanner. It also has a Design Engineering Center located at Filinvest Corporate City Alabang which was established in 1998 to meet the growing demands of the global design engineering.
Our goal is to contribute to the society by innovating and creating products that would make driving safer and more secure while preserving the planet. Our associates are expected to breakthrough their own boundaries, trust their potential and enhance their capabilities.
DENSO PHILIPPINES CORPORATION
Established
1995
Main Business Field
Manufacture and sale of instrument clusters, HVAC, radiators, sonars and smart keys.
Address
109 Unity Avenue, Carmelray Industrial Park 1, 4037 Canlubang, Calamba City, Laguna, Philippines
Philippine factory growth hit 10-month high in January
By JON VIKTOR D. CABUENAS, GMA Integrated News
The Philippines opened 2023 with a rebound in factory production after growth hit a three-month low recorded last December, government data released on Thursday showed.
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Preliminary results of the Monthly Integrated Survey of Selected Industries (MISSI) of the Philippine Statistics Authority (PSA) showed that the volume of production index (VoPI) expanded by 10.6% year-on-year in January.
The latest expansion compares with the 4.2% in December and 10.9% in the previous year. It is the fastest expansion in 10 months since March 2022’s 346.1%.
Higher annual growth rates were recorded in the manufacture of food products (17.3%), beverages (31.1%), other non-metallic mineral products (22.6%), and other manufacturing and repair and installation of machinery and equipment (30.5%).
After the contractions in December, rebounds were seen in the manufacture of electrical equipment (53.5%), transport equipment (24.3%), wearing apparel (13.7%), recorded media (13.0%), pharmaceutical products (11.2%), textiles (11.1%), tobacco products (1.6%), and basic metals (0.8%).
Meanwhile, slowdowns were reported in the manufacture of leather (14.9%); wood, bamboo, cane, rattan (11.0%); machinery and equipment except electrical (8.4%); chemical and chemical products (6.9%); and paper (0.8%).
Contractions were reported in the manufacture of coke and refined petroleum products (-11.6%); computer, electronic, and optical products (-7.3%); rubber and plastic products (-5.7%); fabricated metal products (-3.0%); and furniture (-18.9%).
The average capacity utilization rate for the month was recorded at 72.6%, higher than the 71.5% recorded in December. Some 21.1% of establishments operated at full capacity, while 39.3% operated at below 70% capacity.
In terms of the value of production index (VaPI), growth clocked in at 15.4%, faster than the 9.5% in December and 15.1% the same month in 2022.
The latest data are in line with results of the S&P Global Philippines Manufacturing PMI, which compiles responses of purchasing managers in a panel of around 400 manufacturers across the country.
“Overall, strong domestic demand fed into higher optimism for the year ahead,” S&P Global Market Intelligence Maryam Baluch said in an earlier commentary.
“Moreover, the lack of COVID restrictions, greater investment in new products and undertaking new projects aided hopes of a prosperous year for the Filipino manufacturing sector,” she added.—AOL, GMA Integrated News
PROCTER & GAMBLE (P&G) OPENS NEW DIAPER MANUFACTURING LINE IN LAGUNA — Photo shows Trade and Industry Secretary Alfredo E. Pascual (center) led the ribbon-cutting ceremony together with P&G Philippines President and General Manager Raffy Fajardo (right), and P&G Cabuyao Plant Manager Seema Menon, at the inauguration of the new P&G diaper manufacturing line in Cabuyao, Laguna on Thursday, March 2, 2023.
Procter & Gamble (P&G), the world’s leading consumer goods company, has completed a new diaper manufacturing line worth P864 million to expand production capacity at its current facility in Cabuyao, Laguna for export to South Korea and Vietnam.
Trade and Industry Secretary Alfredo E. Pascual said during the plant inauguration Thursday, March 2 that the Pampers Pull-up Pants line is P&G Philippines’ biggest of three expansion projects in the country for 2022-2023. It is also one of the most advanced manufacturing lines for P&G in Asia.
Registered with the Board of Investment in September 2022, the project will produce baby diaper products that will eventually be exported and sold to Korea and Vietnam.
The export value of these products, which P&G also manufactures, has jumped over six-fold from $6 million in 2018 to $40 million in 2022. Last year, South Korea was the top export market for these products, followed by Vietnam and Malaysia.
“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.
Aside from Pampers, P&G’s Cabuyao Plant also produces the company’s trusted home and hygiene brands such as 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.
Among other benefits listed in the CREATE Law, the importation of capital equipment, raw materials, or accessories is exempt from tax and duty.
Pascual said that the manufacturing operation of P&G augurs well for the government’s vision to develop a sustainable and innovative manufacturing industry. “We aspire to become a leading manufacturing hub across Asia,” he said.
He said that the country’s unique location favors upcoming manufacturing projects as it is a critical
entry point to over 600 million people in the ASEAN market. The Philippines is at the crossroads of international shipping and airline trade routes. Within Asia, the Philippines is often reachable within 3 to 4 hours by plane, he pointed out.
“We will continue to promote strategic partnerships between the government, private sector, academe, and other relevant institutions. This is to provide more targeted interventions to address specific binding constraints of the manufacturing industry,” he added.
Pascual further cited the company for its continued expansion and integration of its operations with the rest of the world for the past 115 years
P&G Philippines is the company’s first operational unit in the Far East and the second oldest P&G subsidiary outside North America. It started operations in the Philippines in 1908 when two American ex-troopers established a partnership named Manila Refining Company.
According to Pascual, the local unit was then called the Philippine Manufacturing Company or PMC when he was offered his first job after college in the 1970s.
“I worked at your former Tondo plant in Manila for two years: the first year was as the industrial engineer of the Camay and Safeguard Department, and the second year was as the manager of the Dari-Crème, Purico, and Primex Department,” the DTI chief shared.
P&G further expanded and established in Manila in 1999 its Global Business Services, a pioneer in the BPO-Global Inhouse Center industry. Now, P&G GBS serves one-third of P&G companies worldwide, currently employing 1,600 full-time employees.
P&G also operates a Regional Operating Headquarters since 2011 to support your subsidiaries and affiliates in Asia.
As a P&G alumnus, Pascual thanked the company for continuously investing in Filipinos, helping them become future leaders. “P&G alumni like myself recognize P&G as an excellent training ground for young Filipinos,” said the trade chief.
“With your long stay in the country and the scale of your operations, P&G Philippines has contributed significantly to our country’s economic growth and development. It has been consistently recognized as one of the top taxpayers in the Philippines,” he said.
He said that P&G’s merchandise items and consumer brands have become household names for cleaning and personal care products in many Filipino homes. P&G Philippines has a robust portfolio of product brands, notably Safeguard, Tide, Downy, Ariel, Head & Shoulders, Pantene, Oral-B, Olay, and Joy.
vision = to make Solderindo solder wires from Indonesia the no. 3 most popular brand of solder lead/ lead-free solder wires in the Philippines by 2033
(oks na yung no. 3, hahaha, after ishikawa japan & rubicon japan.. to be honest & realtalk, Solderindo solder wires are even superior in quality, the best quality in the market.. and lower price..)
Japanese semiconductor firms pledge billions of pesos in investments to Philippines
By TED CORDERO, GMA Integrated News
TOKYO— Japanese semiconductor companies have committed to invest “billions of pesos” to the Philippines - which could generate over 10,000 jobs - during the second day of President Ferdinand Marcos Jr.’s working visit here.
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On Thursday morning, Marcos presided over the roundtable meeting attended by top executives from Japan's semiconductor and electronics firms - Japan Aviation Electronics Industry, Ltd.; Yazaki Corporation; Yokowo Manufacturing of the Philippines; Sumitomo Electric Industries, Ltd.; Brother Industries, Ltd.; IBIDEN Co., Ltd.; Seiko Epson Corporation; NIDEC-SHIMPO Corporation; and TDK Corporation - who are looking to expand their operations in the Philippines.
The total amount of investment commitments will be announced by the President on February 10, 2023 during the signing of the letters of intent by the Japanese companies, according to the Presidential Communications Office.
The investment pledges are expected to generate more than 10,000 jobs, which are seen to boost the administration’s initiative to create more jobs for Filipinos.
In his remarks during the roundtable meeting, Marcos said the country aspires to become “hubs of excellence for sectors where we have a natural comparative advantage.”
UPDATED 2023: BIR Inventory Lists in the Philippines
Do you run a business in the Philippines? Does the business hold inventories for commercial sale? If so, are you aware of the key BIR compliance requirement to submit updated Inventory Lists to the BIR each year?
In short – businesses in the Philippines that hold inventories for sale are required to submit an updated Inventory List to the BIR by a specific deadline every year.
Our Explainer below outlines all you need to know about the submission of BIR Inventory Lists!
We also outline the Deadline Date for the submission of the Inventory List by PH companies in 2023!
What is the Inventory List?
The Inventory List is a compliance requirement for businesses that hold inventory for sale in the Philippines. This list must be prepared and submitted by relevant companies to the BIR on an annual basis.
The Inventory List is a comprehensive report that must outline the details of all inventories held by a company as at the last date of the company’s financial year.
The Deadline Date for submission each year depends on the financial year (i.e. calendar or fiscal) of the particular business. Many companies in the Philippines will have financial years that follow the calendar year. This means that the last date of the financial year for many businesses will be 31 December.
See further below for the submission Deadline Date that applies to your business!
It’s important to note that the Inventory List is not the only inventory-related document or record that has to be submitted to the BIR at the time of submitting the Inventory List! The BIR requires other inventory-related documents, records and schedules to be submitted along with the Inventory List – as outlined further below!
Why Must PH Companies Submit an Inventory List?
The primary reason for submitting an Inventory List in the Philippines is simple – it’s a mandatory compliance requirement under the Philippine tax and compliance framework. That is as good a reason as any reason!
Section 13 of Revenue Regulations No. V-1, also known as the Bookkeeping Regulations, provide that taxpayers in the Philippines that hold inventories for sale are required to have and maintain a book of inventories.
RR No. V-1 also requires that details relating to such inventories held at the end of each financial year by a company must be prepared and submitted to the BIR.
If you don’t have robust inventory management processes or systems in place, completing the Inventory List accurately can sometimes be quite a challenge!
One of our previous articles might be quite helpful in this regard aswe identify a number of inventory management controlsthat can help your PH business and make the submission of BIR Inventory Lists each year a much more efficient process!
What Information Must be Included in the Inventory List?
RR No. V-1 provides that the Inventory List should include various details relating to the type, value and number of inventories held by a company.
Under RR No. V-1, the following information should be provided in relation to all inventories for sale which are held by a company on the last date of the previous financial year:
A Description of the goods or inventories held by the company;
The Quantity of the goods or inventories held;
A Description of the particular types of inventories held by the business;
The Unit in which the inventory is measured or valued by the business;
The Total Cost of every item of stocks-in-trade, materials, supplies and other goods found on the premises of the company at the close of the financial year.
What Can Be Excluded From the Inventory List?
Inventories that are not held for sale are not required to be included in the Inventory List.
Why would a company hold inventories or stocks of a product that are not actually for sale?
Businesses will usually have items that they hold which might help them to run their business operations but are not necessarily part of the goods that are sold to customers.
This might include, for example, spare parts for machines, daily office supplies, IT equipment for internal use by company representatives or employees, manufacturing supplies and any other equipment or items that are required to support the internal operations of a company.
It’s Important to Know What to Include in the Inventory List!
Submitting the Inventory List to the BIR with accurate details and information is an important exercise!
Why? Here are just a few reasons:
Double reporting – Sometimes, two companies might include the same inventory in each of their Inventory Lists. For example, consigned goods might incorrectly appear in the inventory lists of both the consignor and the consignee. So it would be practical for the consignor and consignee to communicate and settle any potential discrepancies that might arise within their respective Inventory Lists.
Incorrect information in the Inventory List may result in inaccurate information being recorded in theaccounting records/books, inaccuratebudgets and forecastsas well as incomplete financial reports.
The submission of incorrect information to the BIR can result in financial penalties (see further below).
Inaccurate reporting of inventory can give rise to investigations or audits by the BIR.
Above are just 4 key reasons for why companies need to ensure their Inventory Lists are accurate and submitted on time! There are undoubtedly many more reasons.
So make sure to treat the BIR Inventory List as any other type of tax or compliance requirement here in the Philippines and get your Inventory Lists filed on time every year!
But,My Business Does Not Have Any Inventories at the End of the Year?
Ok – But, does the businessusuallyhold inventories for sale? If so, then an Inventory List will still have to be filed!
If your company usually holds inventory, but, for some reason, it just did not have any inventories at the end of the prior financial year, the company is still required to submit an Inventory List – it just won’t include any details of any inventories held!
Why would a company not have inventories at the end of the financial year if it is a company that sells goods as a commercial business? This could arise for a number of reasons!
Perhaps, the company stopped operating for a few months due to the current Covid pandemic and as a result, stopped purchasing stocks or inventories. Perhaps, the current global supply chain challenges affected the company’s inventories and a new shipment of goods is not due until the following year. Or perhaps, simply, the end of the financial year fell at a time at which stocks had been depleted and the new stocks had not yet arrived!
The reasons are endless. However, the important thing to remember from a compliance perspective, is that if your company usually holds inventories for sale to customers, you will have to consider the submission of the Inventory Lists every year – whether or not you actually have inventories on hand at the end of the year!
What is the Deadline for Submitting the Inventory List?
Inventory Lists must be submitted every year. The Inventory List Deadline in the Philippines is within 30 days of the end of the company’s financial year.
So, as mentioned above, the submission date for each company can vary depending on the date of the company’s financial year.
Many companies will have a financial year that follows the regular calendar year, meaning 1 January – 31 December. However, some companies might select a different financial year (also referred to as a fiscal year).
Why might a company choose a financial year that differs from the calendar year? There could be many reasons for this – there is generally no specific formula.
For example, the Philippine company might be a subsidiary and part of a larger group of companies, either internationally or domestically, which follow a different financial year. Management will generally want all group companies to have the same financial year. Or perhaps management wanted to align the financial year with the registration of the business – i.e. if the business was registered on 1 June, management might like to keep the financial year as 1 June to 31 May.
Here’s an example to help companies understand and prepare for the Inventory List Deadline!
In the example below, the financial year of ABC Company follows the calendar year, while XYZ Company and PPP Company follow their own fiscal years.
As a result, the deadlines for the submission of annual Inventory Lists are different, as outlined below:
Company Name
Financial Year
End of the Financial Year
Deadline for Submission of Annual Inventory List
ABC Company
Calendar Year
December 31, 2022
January 30, 2023
XYZ Company
Fiscal Year
June 30, 2023
July 30, 2023
PPP Company
Fiscal Year
September 30, 2023
October 30, 2023
Additional Reporting Requirements
In 2015, the BIR issued Revenue Memorandum Circular No. 57-2015, which provided further guidelines on the submission of the BIR Inventory List and additional information that must be submitted along with the Inventory List.
Certain companies are required to submit various records, lists and schedules in addition to the Inventory List.
This includes companies that maintain inventory of stock-in-trade, raw materials, goods in process, supplies and other goods, such as manufacturing, wholesaling, distributing/retailing sectors, real estate dealers/developers and service companies, e.g., construction companies, building contractors, etc.
Under RMC No. 57-2015, a business with tangible asset-rich balance sheets with at least half of its total assets in working capital assets (e.g. accounts receivable, inventory), must submit, in both hard and soft copy, additional schedules and lists in the prescribed format outlined in the Annexes to RMC No. 57-2015, as follows:
For manufacturing, merchandising or retail companies – inventory of merchandise/raw materials/goods in process/finished goods (Annex A)
For real estate companies – inventory of saleable units with corresponding cost per project (Annex B) and/or inventory of saleable units per project with the corresponding trade accounts receivable reconciliation (Annex B-1)
For construction industries – schedule of outstanding receivables (beginning and ending) and realized gross profit per project (Annex C)
What about the soft copies of these records?
The soft copies of the Inventory List and the additional schedules and reports must be submitted via an accurately labeled DVD-R, along with a Notarized Certification signed by the authorized representative of the taxpayer. This Certificate is to certify that the information contained on the DVD-R is true and accurate.
Companies must recognise the filing of the BIR Inventory List as a key compliance requirement under the Philippine tax and compliance framework!
Where a company does not file the Inventory List by the relevant Deadline Date, or files the Inventory List using an incorrect format or without the required accompanying documents and records (in other words, filing in a format not-prescribed by the BIR), the company will be in breach of its BIR filing obligations and will be subjected to penalties for non-filing.
Section 3 ofRMC No. 57-2015outlines the penalties for violations of the requirement to submit both the Inventory List and the additional reporting documents, records and schedules.
