P&G expands Cabuyao plant to boost export to Korea and Vietnam

3/3/23

 P&G Cabuyao

On 2 March 2023, trusted multinational consumer goods company Procter & Gamble (P&G) Philippines inaugurated its new Pampers manufacturing line intended to produce export products to Korean and Vietnamese markets. This represents an Php 864 million worth of investment.

Department of Trade and Industry (DTI) Secretary Fred Pascual, together with P&G’s Raffy Fajardo, led the ribbon-cutting ceremony at the P&G Cabuyao Plant in Laguna to formally commemorate the event. They were joined byBoard of Investments Assistant Director Manny Cruz who were able to witness the state-of-the-art production facility in action through a demonstration tour led by Seema Menon, P&G Cabuyao’s Plant Manager. 

This new export manufacturing line marks a significant investment that will help boost the Philippine export output to key markets in Asia. This is expected to contribute greatly to the Philippines' economic growth and expansion, especially coming out of the COVID-19 pandemic.

In his keynote message, Secretary Pascual shared that "This PHP864 million investment is the direct outcome of a critical economic reform that the Philippine economic team has pushed for since the previous administration—Republic Act 11534 or the Corporate Recovery and Tax Incentives for Enterprises Act or CREATE."

Over the years, the Philippine government has been proactively working towards the creation of a healthy business environment that will enable the Philippines to be a top investment destination in Asia. Several structural reforms have also been instituted to establish stronger macroeconomic fundamentals.

P&G's manufacturing line is touted as one of the most advanced diaper-manufacturing lines in P&G globally and is intended to produce premium Pampers products for export to Korea and Vietnam.

According to P&G Philippines President and General Manager Raffy Fajardo, the new Pampers export line is a testament to the company’s continued commitment to producing superior products and further boosting the country’s economy.

"P&G's commitment to continuous improvement and innovation of our supply chain technology has enabled us to provide products of superior quality and value. Together with the anticipated boost in sales for the company, this project will also help the economy and boost the country’s export output. P&G has and will always believe in Filipino talent, and this project will also facilitate significant upskilling for employees working on the line,” said Fajardo.

Meanwhile, Secretary Pascual mentioned that "From the vantage point of the Philippine government, the new diaper manufacturing line will create direct and indirect jobs. Moreover, it will link the Philippines to the global value chain for manufacturing and distributing these diapers across Asia."

Further, Secretary Pascual also acknowledged the critical role that P&G Philippines plays in boosting the country's manufacturing industry, creating jobs, and helping propel the Philippines’ economic growth. Through its investments in technology, sustainability, and collaboration with partners, P&G has established itself as a leader in the industry, driving growth and delivering value to stakeholders.

With over 87 years of presence in Filipino homes, P&G continues to serve the Philippines through its superior products that promote health and hygiene, and investments that help boost the Philippine economy and create jobs. To date, P&G Philippines is a 2,500-strong organization that fosters Filipino talent across the country.

P&G’s Cabuyao Plant houses the newest Pampers Pull-up Pants line, one of the most advanced manufacturing lines for P&G in Asia. Aside from Pampers, P&G's Cabuyao Plant also produces the company’s trusted home and hygiene brands such as laundry detergents Ariel and Tide, dishwashing liquid Joy, fabric conditioner Downy, disposable period pads Whisper, and antibacterial soap Safeguard for the local and export market.

In closing, Secretary Pascual reiterated that "We in the Marcos administration strive to make the Philippines an upper-middle-income country soon. We plan to develop a sustainable and innovative manufacturing industry. We aspire to become a leading manufacturing hub across Asia." Likewise, he assured P&G that the DTI will continue to promote strategic partnerships between government, private sector, academe, and other relevant institutions to provide more targeted interventions to address specific binding constraints of the manufacturing industry.