MANILA, Philippines – Multinational firm Procter & Gamble is doubling the capacity of its baby care production facility in Laguna to produce up to 20 million diaper pads a year.
On May 17, P&G Philippines Inc. will start operations in its newly expanded facility where it will produce disposable Pampers-branded diapers that will be sold locally and exported abroad.
The world’s leading consumer company increased its budget for the 3-year expansion program at the Laguna production plant to P3 billion from the initial P2.5 billion.
In a statement, P&G Philippines said the additional capacity aims to “facilitate growth in the business by optimizing its supply chain.”
Previously, P&G Philippines officials said the growth in diaper production is in line with the 2% population growth in the country. Local diaper market is 35 million pads a year.
About 40% of the company’s diaper production is for export while about 30% of the production of the new line would mainly serve the domestic market, a company official had previously said.
“The Philippines remains a key market for P&G globally. Throughout the company’s 75-year history in the country, P&G has continually invested in innovations to improve and upgrade its plant technology and facilities and provide Filipinos products with superior quality and value,” noted global group president for baby care Martin Riant said at the inauguration rites at the plant on Thursday, which was also attended by officials from the trade department and the local government.
P&G build the production line at the Laguna Industrial Park in 2006 for P360 million after reorganizing its Philippine business into “a toll manufacturer providing the service of converting raw and packing materials to finished products and other related services for the account” of other affiliated companies, P&G said in a report to the Securities and Exchange Commission.
Aside from the Philippines, P&G also has production facilities in Vietnam, China and India.
Aside from Pampers, P&G’s Laguna complex produces the multinational’s brand detergents: Tide, Mr. Clean, Ariel, and Bonux, fabric conditioner Downey, dishwashing soap Joy, and disposable feminine pads for the local and export market.
Baby and family care products make up about a fifth of P&G’s nearly $80 billion of total revenues, and P&G sells a wide range of its products in southeast Asia, ranging from Pantene and Gillette to pet food.
Rising incomes and favorable demographics are encouraging global consumer goods makers to expand in the region. – Rappler.com