Du Pont plans to expand RP operation

JAKARTA, Indonesia — Du Pont, through its Philippine subsidiary Pioneer Hi-Bred International, Inc., plans to expand its manufacturing operation in the Philippines and Thailand next year.

In a media forum being held here, Pioneer Hi-Bred regional director for Asia Pacific Arun Baral said the company is spending $8 million to $10 million for plant expansions in the Philippines and Thailand this year and an additional $25 million to $30 million next year, depending on additional cost factors.

“We are investing in the region,” Baral said, adding that Pioneer Hi Bred has broken ground for a second seed processing plant in Tarlac for completion next year.

Pioneer’s existing plant is located in Polomolok, South Cotabato.

Right now, Pioneer produces primarily corn seeds in the Philippines. Baral said Du Pont is now working on developing hybrid rice for the ASEAN region. He said Du Pont is working with the International Rice Research Institute (IRRI) to develop a new hybrid rice variety.

Du Pont East Asia president Carl J. Lukach said the company is bringing to ASEAN not just its businesses developed in the US, but also its science people to create products specifically for the region.

“We will tailor our products to make you grow” by increasing Du Pont’s research and development investment in the ASEAN region, Lukach said.

Du Pont’s investment in research and development globally is $1.4 billion, of which 50 percent or about $690 million alone is spent on increasing food production; 15 percent is spent on decreasing dependence on fossil fuels; 12 percent on protecting lives and 23 percent on other R & D activities.

For the ASEAN region alone, Lukach said, Du Pont is projecting sales of $800 million, a 15 percent decline from last year.

Globally, Du Pont’s sales this year is projected to decline to $26 billion compared to the almost $31 billion last year.

Lukach said this is due to the global economic slump.

Things are expected to turn around in the next three years with projected sales growth of 10 percent, Lukach said.

Du Pont’s products include Kevlar, Teflon, and Pioneer seeds, as well as Nomex fire retardants, Zytel autoparts and Riston and Tyvek.