Amid rising demand internationally for coconut-based products.
Last Monday, December 22, Agriculture Secretary Francisco Tiu Laurel Jr. led an ocular inspection of the facilities of United Coconut Chemicals Inc. (Cocochem).
The said move is to reassesses whether to proceed with the long-planned sale of the coconut chemicals producer amid renewed global demand for coconut-based products.
This especially notable in the rising demand in Europe for coconut derivatives, which gained traction once more. As a result, this prompted the government to review its plans.
“We want to see for ourselves whether it still makes sense for the government to continue operating this chemicals and oleo fats factory given the rising demand for coconut products, particularly in Europe,” said Tiu Laurel.
The government, through the Land Bank of the Philippines, is offering about 682 million common shares of the company to raise at least P2.82 billion. The proceeds from the intended sale is said to be going directly to coconut farmers.
In addition, the sale will also allow investors to revive or repurpose the asset in line with shifting market conditions.
Cocochem was established in 1981 and was once regarded as the the largest coconut chemicals and oleo fats factory in Southeast Asia. Among its achievements is being first in the region to produce fatty alcohols via the fatty acid route using German-designed Lurgi technology.
Meanwhile, its complex also features a private jetty capable of handling 35,000-deadweight-ton vessels, a logistical advantage that supported its export-driven growth.
After its plant operations were shut down in 2012 due to record-high coconut oil prices, the company subsequently shifted gears and in 2014, Cocochem transitioned from manufacturing to a facilities-based enterprise.
According to the Department of Agriculture, Cocochem generates its income primarily from land leases, storage tank and warehouse rentals, power distribution, wastewater treatment, pier and weighbridge operations, dockage fees, water supply, and housing rentals.
