P1.6B coco extraction plant to rise in Davao

P1.6B coco extraction plant to rise in Davao

THE National Economic Research and Business Assistance Center (Nerbac) in Davao Region reported that a P1.6 billion coconut sweetener plant would be built in the region by a group of Korean investors.Nerbac said final stages for the planned multi-billion-peso project are being undertaken by CJ Cheil Jedang Corporation of Korea. Last month, a five-member investment mission delegation headed by CJ Cheil Jedang Corp. senior executive vice president Jae Ho Lee visited the city to meet with representatives from Nerbac, Department of Trade and Industry (DTI), and other government agencies.During the visit, the Korean investors presented various arrangements required by the plant.

The delegation said they would need 100,000 tons of cleaned matured coconut shells (13 percent with water content) annually.

Moreover, the Koreans also need assistance in the transportation of raw materials to their plant and the establishment of buying centers.

To assist in their decision-making, the proponents further requested for information on environmental regulations, current buying prices, and investment incentives, the Nerbac monthly report stated.

Trade and Industry Assistant Secretary Merly M. Cruz said the Nerbac, being the investment arm of DTI Southern Mindanao, would do its best to ensure that the project proceed smoothly.

“This is a good start for the region. And since the company needs thousands of tons of coconut for their raw material, this will be a great opportunity for local coconut farmers,” Cruz said.

The coconut industry is among Davao Region’s Industry Clusters. The Industry Clustering Approach is a development strategy being adopted by the Regional Development Council (RDC) Southern Mindanao in order for the 11 identified industries — mango, banana, coconut, seaweed, mining, wood, eco-tourism, information and communications technology (ICT), meat and poultry, bio-fuel, and machinery and equipment parts — to reach their full potential.

Cruz is optimistic the entry of this Korean investment will deliver vast opportunities not only to the coconut industry but to other sectors as well.


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