Chemical manufacturer D and L Industries Inc. (DNL) has announced a P1 billion fund for capital expenditures (CapEx) supporting minor expansions at its Batangas plant. This develops as a strategic response to growing market demand for specific products. While lower than last year’s CapEx, the investment reflects DNL’s continued effort to expand its production capacity and maintain competitive edge in both local and export markets.
DNL president Alvin D. Lao explained that this year’s capital spending is a tad lower than the P1.16 billion spent in 2024, as much of the Batangas plant’s major construction has already been completed. “CapEx peaked in 2022 at P3.5 billion and will continue to be lower moving forward. Some projects started during the main construction phase have recently been completed, but there will still be some ongoing minor expansions,” Lao said at a recent briefing.
The Batangas plant, central to DNL’s long-term growth, is expected to contribute significantly to the company’s bottom line in 2025, with an increase in export revenues. Despite early startup losses, the plant reported a net income of P244 million in 2024, The business reported P248 million in earnings in the fourth quarter.
Looking ahead, DNL anticipates the Batangas plant to improve steadily, with earnings expected to experience “higher lows and higher highs” throughout the year. The growth is expected to boost overall net income, further solidifying the plant’s role as growth engine for DNL.
DNL continues to see strong export growth, with revenue increasing to P12.4 billion in 2024, up from P9.1 billion the year prior, and gross profits rising by 37 percent. Exports now account for 30 percent of total revenue, positioning DNL for further global expansion.
Lao remains confident of the company’s export prospects, dismissing concerns over potential new tariff in the US market. “The US is a small part of our export business. There is significant demand for our products from various international markets, not just the US,” he said. DNL is also exploring opportunities from changing global trade dynamics, particularly the trade tensions between the US and China. The company views these shifts as potential avenues to capture market share by supplying companies with sourcing challenges due to tariff or trade restrictions.
