New coconut plant

Pilipinas Kao, the Philippine affiliate of Kao Japan, is investing P750 million (€14.7m) to set up a plant to manufacture high-value coconut-based products in Misamis Oriental.

Pilipinas Kao vice president Erotido Valdez said the company will be constructing a bigger production facility in its 26.5 hectare property in Misamis Oriental Economic Zone to make the product which can be used as food preservative.

The new plant will increase the company's present production capacity of this product to 10,000 metric tons annually from 7,000 metric tons. The product will all be exported to Malaysia.

Valdez said the local company was able to bag the project because the raw materials are available locally. Malaysia and Germany earlier expressed interest in getting the project off the ground.

The company is now in the process of finalising its application for incentives under the Philippine Economic Zone Authority. If approved, Pilipinas Kao would be entitled to government incentives that include an income tax holiday, 5 per cent tax on gross income and tax-free importation of capital equipment and raw materials.

Pilipinas Kao was established in 1977. It is engaged in the manufacture of glycerine, amines, fatty alcohol, and other coco-chemical products.