BOI sees infusion of $2B worth of investments in petrochem plants
The Board of Investments expects more than $2 billion worth of fresh investments to be infused into various proposed in the local petrochemical industry, which the government intends to boost as part of its industrialization strategy.
Among these was the investment made by Polish firm Pietrucha, which has recently completed the establishment of a plastics production facility at the Freeport Area of Bataan in Mariveles. The BOI, however, did not disclose the amount invested by Pietrucha.
According to the BOI, the Polish plastics manufacturing facility in Bataan will produce high-strengthened polyvinyl chloride (PVC) plastic sheet piles. With local partner Design Science Inc., the company started the operations of the facility in June this year. It is expected to be in full commercial operations this month.
Aside from its manufacturing operations, Pietrucha’s project also has an engineering design component that can tap the country’s pool of highly-skilled professionals and well-educated workers.
“Our consistent economic and governance reforms as well as the competitive costs of doing business and of labor have greatly improved investor confidence. We are confident that this significant investment in the manufacturing [sector] will create more stable and decent jobs and sustain the upward momentum of the Philippine economy,” Trade Undersecretary Ceferino S. Rodolfo said.
Rodolfo said the facility would not only meet the growing demand of the domestic market but could also unlock the country’s potential in securing a significant slice of the regional and global manufacturing market.
“Catering to the needs of both local and foreign markets will position the Philippines as a manufacturing hub for the Asean region as well as a preferred source and destination of investments,” Rodolfo added.
In the Philippines, the petrochemicals industry anchors the country’s industrial development on the production of plastic resins, which are used as inputs to the downstream plastics industry to form different products. It provides robust multiplier effects on other sectors of the economy such as construction, electronics and computer, transportation and automotive, and telecommunications, the BOI said.
The BOI said it had been continuously carrying out programs aimed at attracting additional investments, acquiring appropriate technology, and increasing the capacity of the petrochemical industry. It has also been extending support to the petrochemical industry through its inclusion in the Investment Priorities Plan (IPP) listing, wherein registered firms are entitled to fiscal and non-fiscal incentives.
