If state of infrastructure improves
MANILA, Philippines - Colgate-Palmolive Philippines Inc. may consider reviving its manufacturing operations in the country should the next administration address infrastructure problems and high cost of utilities such as electricity and water, a top company official said.
The company closed in 2008 its facility in Makati that produces hair care and home care products.
In an interview, Colgate-Palmolive Philippines vice president and general manager Stephen Lau said they remain open at setting up once again production facilities locally given the country’s strong economic performance in recent years.
“Right now, the Philippines is growing so fast. The Philippine market overall, I believe, continues to grow on a high single digit for both oral care and personal care. This year, I believe the growth will even be better because of the election season,” Lau said.
“Last year, we had a great APEC event, we had the Pope coming here, and now we have so many visitors coming into the Philippines. And everybody knows China is not going well,” he added.
However, Lau said certain challenges must be addressed first by the national government to convince the company to revive its manufacturing locally.
“I hope we could have a factory here but it really depends on the infrastructure. As we all know, we need infrastructure. One of the very key things is electricity. We don’t lack in labor but we have very expensive electricity in the Philippines. And water is also not cheap,” he said.
“With the new president I hope the infrastructure will be better so people can have more jobs and more income for their families. I hope the new government continues to improve the infrastructure of the Philippines, electricity and water (and bring) all these necessities at a very low and affordable price so that more international companies will continue to build supply chain within Southeast Asia,” Lau added.
At present, Colgate-Palmolive products sold in the country are imported from countries such as China, Thailand, India and the US.
“We used to have a factory in Rockwell but we sold it back to Rockwell Land. As long as we see business is healthy and growing, everything is possible to consider. I hope that day will come (that we will put up production facilities in the Philippines once more) and I think that is possible,” Lau said.
Colgate-Palmolive is a global giant in oral and personal care through products such as Colgate, Palmolive, Gard, Tender Care, Axion and Ajax.
In the Philippines, Lau said the company holds more than 60 percent market share in the toothpaste segment and 27 percent in the shampoo segment.
He said most of the company’s sales locally come from the toothpaste and shampoo sachets which highlight Filipinos’ affinity for more affordable products.
“We will continue to develop more products relevant to Filipinos. We have lined up many products this year. But the key is not just to launch new products but to launch products relevant to Filipinos and are very affordable,” Lau said.
Aside from looking at another double digit revenue growth this year, Colgate-Palmolive Philippines is also pursuing programs to drive oral health education in public schools across the country.
Colgate-Palmolive has also teamed up with retail giant Puregold and Operation Smile Philippines Foundation Inc. to help indigent children afflicted with oral cleft.
When Puregold shoppers buy participating Colgate products from Feb. 15 to April 17, P5 from every product purchased will be donated to Operation Smile.