Procter & Gamble (P&G) Philippines inaugurated its diaper manufacturing line in Cabuyao, Laguna on Thursday which is expected to link the country to the global value chain for manufacturing across Asia.
Trade Secretary Alfredo E. Pascual said the company spent P864 million on the new manufacturing line. He said the facility is the “direct outcome” of Republic Act 11534 or the Corporate Recovery and Tax Incentives for Enterprises Act (CREATE).
Pascual also said that weeks before President Ferdinand R. Marcos Jr.’s visit to the United States, the company applied for registration as an export producer of the new manufacturing line for Pampers pull-up pants in September 2022 under CREATE.
“The diaper products from this new line will eventually be exported and sold to Korea and Vietnam. That is why, among other benefits listed in the CREATE Law, the importation of capital equipment, raw materials, or accessories is exempt from tax and duty.”
He said the export value of sanitary towels, feminine hygiene products, and baby diapers, which P&G also manufactures, jumped sixfold to $40 million in 2022 from $6 million in 2018.
Last year, the Trade chief said, South Korea was the top export market for these products, followed by Vietnam and Malaysia.
“As we welcome more investments in producing these products under the CREATE Law, the Philippines may depend less and less on importing such products.”
The Trade chief said the new factory is expected to create direct and indirect jobs.
He also encouraged P&G to “leverage” the Regional Comprehensive Economic Partnership (RCEP), which the Philippine Senate ratified on February 21. He said the mega trade deal could help the Philippine-based manufacturer to enhance its access to the Asia-Pacific regional market.
“RCEP will make some production inputs more accessible, our exports more competitive, and manufacturing in the country less expensive.”
According to its website, P&G offers fabric care, home care, baby care, feminine care, family care, grooming, oral care, personal health care, hair care and skin & personal care products.
P&G Philippines’ portfolio of product brands includes Safeguard, Tide, Downy, Ariel, Head & Shoulders, Pampers, and Gillette.
Aside from Pampers, the Department of Trade and Industry said the Cabuyao Plant also produces the company’s 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.