Chemrez plans second coco-diesel plant despite gov't suspension

Chemrez Technology Inc., a subsidiary of D&L Industries Inc., is planning to build a second coco-diesel plant in the Philippines as it anticipates increased demand despite the government's suspension of implementing 4 percent biodiesel blends.

D&L Industries CEO Alvin Lao stated that while exact details such as timing and cost are still being finalized, the company remains highly likely to proceed with the project.

Despite the recent suspension by the National Biofuels Board due to high coconut oil prices and concerns over potential inflationary effects on pump prices, D&L Industries is moving forward with its plans.

The company believes that once the government-mandated blend increase resumes at a later date, having additional capacity will make sense for their growth objectives and maximizing long-term shareholder value.

D&L remains optimistic about the long-term benefits of biodiesel for the economy, environment, and consumers, even as they continue to evaluate risks and returns.

With its Batangas plant now completed and no other major capital expenditures in the pipeline, D&L has the financial flexibility to potentially undertake the construction of a new biodiesel facility.