Investment in new P&G diaper facility estimated at P864M — DTI

THE Department of Trade and Industry (DTI) said consumer goods manufacturer Procter & Gamble (P&G) Philippines brought in P864 million worth of investment with the inauguration of its Pampers diaper manufacturing line in Cabuyao, Laguna.

Trade Secretary Alfredo E. Pascual said during the ribbon-cutting ceremony on Thursday that the new Pampers facility will export to South Korea and Vietnam.  

“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,” Mr. Pascual said.  

“The diaper products from this new line will eventually be exported and sold to Korea and Vietnam. That is why, among other benefits listed in the CREATE Law, the importation of capital equipment, raw materials, or accessories is exempt from tax and duty,” he added.

“From the vantage point of the Philippine government, the new diaper manufacturing line will create direct and indirect jobs. Moreover, it will link the Philippines to the global value chain for manufacturing and distributing these diapers across Asia,” Mr. Pascual said.

Other products manufactured at the Cabuyao plant are laundry detergents like Ariel and Tide, Joy dishwashing liquid, Downy fabric conditioner, Whisper disposable period pads, and Safeguard antibacterial soap. The facility services both domestic and export markets.

“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,” P&G Philippines President and General Manager Rafael Arturo S. Fajardo said.  

“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 added. 

Mr. Pascual said in his speech that the exports of Philippine sanitary products hit $40 million last year, adding that the DTI is seeking more investment from the producers of these items.

“Sanitary towels, feminine hygiene products, and baby diapers appear to be pandemic-proof, if not pandemic-driven. 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,” Mr. Pascual said.

“Last year, South Korea was the top export market for these products, followed by Vietnam and Malaysia. As we welcome more investments in producing these products under the CREATE Law, the Philippines may depend less and less on importing such products,” he added. — Revin Mikhael D. Ochave