BIZ BUZZ: D&L holds on to plan for 2nd biodiesel plant
The suspension of the increase in mandated biodiesel blend requirement isn’t stopping D&L Industries Inc. from its expansion.
D&L president and CEO Alvin Lao said they were “serious” about building a second biodiesel plant, mainly because they were anticipating an increase in demand once the government lifts the suspension.
It is, however, still in the planning stages.
“I would say it’s probably a matter of when, not if. Meaning, there’s a high probability we will make a second plant,” Lao said.
They don’t have information on their possible investment amount and timeline just yet. “But the fact that we made that announcement, it’s something we’re very serious about,” Lao said.
Subsidiary Chemrez Technologies Inc., which is responsible for chemical manufacturing, already has a biodiesel plant in Quezon City that produces 90 million liters a year.
The idea didn’t come out of nowhere. Apart from a looming increase in biodiesel blend in all diesel fuel across the country to 4 percent from 3 percent currently, D&L has started making money from its now-profitable Batangas manufacturing plant.
That’s precisely what gave it some leeway to spend some money. Just like Lao said, it’s just a matter of when—and how much.
