Lucio Tan closes old Tanduay distillery in Quiapo

Lucio Tan. FILE PHOTO

MANILA, Philippines—The Lucio Tan group has shut down the liquor production facility of Tanduay Distillers Inc. in Quiapo, Manila, to better manage costs as demand is seen aptly being served by a larger plant in Cabuyao, Laguna.

But Tanduay intends to renovate part of the facility to serve as a museum showcasing its products and distilled spirits production methods, parent conglomerate LTG Inc. disclosed to the Philippine Stock Exchange on Thursday.

The production facility in the area was decommissioned effective April 1, the company said, citing the need to reduce costs.

“TDI believes that its current and anticipated future production requirements can be met through its other remaining facilities, which utilize more modern production technologies and processes,” the disclosure said.

The decommissioned Manila distillery had a capacity to produce 30,000 cases a day.  It employed about 150 workers, whose employment Tanduay had to terminate with the shutdown of the plant.  Tanduay compensated the workers who lost their jobs, one source said.

With the decommissioning, Tanduay will rely more on its larger production facility in Cabuyao, Laguna, which has the capacity to produce 100,000 cases of liquor a day or three times the capacity of the Manila facility.  But Tanduay has no plans to transfer the equipment to Laguna.

“TDI expects the Manila facility to serve as backup plant and may temporarily reopen the plant as needed,” the disclosure said.