Pilipinas Kao to undertake P750-M expansion

Pilipinas Kao Inc. is undertaking a P750 million expansion project to produce sophisticated, high-value, coconut-based raw materials for downstream production.

This was disclosed over the weekend by Pilipinas Kao vice president Erotido Valdes who said the Philippines successfully won over Germany and Malaysia which had also been interested in the project.

As a result of the expansion plan, the firm will build a new and bigger plant in Misamis Oriental. Kao has an existing plant in that area.

The plant’s capacity will be increased to produce 10,000 metric tons of coconut-based derivative from the current capacity of only 7,000 metric tons a year.

"The coconut-based derivative will actually be pharmaceutical grade and can even be used as food preservative," Valdes said. The firm is planning to export all of its product to Malaysia.

According to Valdes, Pilipinas Kao’s new plant will be located in a 26.5-hectare special economic zone in Misamis Oriental.

Last year, Pilipinas Kao opened its fatty alcohol production facility in Jasaan, Misamis Oriental.

Fatty alcohol consists of such raw materials as coconut oil and widely used in the manufacture of detergents, shampoos, conditioners and cosmetics.

Pilipinas Kao is a subsidiary of the Japanese Kao Corp. – Marianne Go