P&G to invest P2.5-B for expansion, to add 100 jobs

By Anjo C. Alimario, Business Mirror

Posted at Nov 17 2010 09:33 PM | Updated as of Nov 18 2010 05:33 AM

MANILA, Philippines - Consumer products manufacturer Procter & Gamble (P&G) announced a P2.5-billion ($60 million) new investment to support its manufacturing plant in Cabuyao, Laguna as it expands plant operations.

Global chief executive officer Bob McDonald—who once served as the country’s general manager from 1991 to 1995—made this announcement during P&G Philippines’ 75th anniversary gala night on Tuesday.

With this expansion, the company will increase its work force from the current 1,300 employees by adding 100 jobs over the next 24 months.

“This year serves as a milestone for the company as it celebrates its rich history,” P&G Philippines general manager Siddik Tetik noted.

Being the first in Asia to house the company’s operations and being the third oldest subsidiary in the world, P&G Philippines claims to be the overall market leader in the fast moving consumer goods (FMCG) industry with a corporate share of 30%.

The company manufactures and distributes a strong portfolio of products of over 20 leading brands across 16 product categories.

McDonald, who calls himself more than a CEO but a lifelong member of P&G, admitted that his family’s stay in the Philippines was made enjoyable and memorable because of the memories of kind people who showed support and friendship during his stay in the country.

P&G Asia group president Deb Henretta pointed out that P&G Philippines is one of the strongest businesses in Asia.

“Today, P&G Philippines is part of the $15-billion business that serves 2 billion consumers in Asia that doubled its growth rate which is a remarkable achievement amid economic challenges,” she said. P&G Philippines posted double-digit growth in the first quarter of the year.

And like any good marriage, the company only gets “stronger and younger.” She added that Philippines has one of the vibrant, youthful and spirited cultures in the world.

“The oldest business in Asia keeps us new,” she said.

President Aquino, who was the event’s keynote speaker at the event, welcomed the new investment.

Aquino, who admitted he is a Safeguard user, considered himself “lucky” as he keeps on announcing “billions of pesos” of investments for the past week.

“Our economy’s growth is reflected on your company’s growth. You are proof of the continued confidence placed by foreign investors on strengths and capabilities of the Filipino people,” he added.

In the second quarter of this year, the manufacturing sector contributed P83 billion, equivalent of 22% of the gross domestic product.

This is a 12% increase over the same period last year.

According to a study conducted by the National Statistics Office in July, almost 3 million individuals earned their living from the manufacturing sector, or 8% of the country’s labor force.

In addressing P&G executives and partner organizations, Aquino noted that in previous years the country was tagged with a culture of greed and corruption.

“Today our nation has been reawakened to a new dawn of optimism and confidence to a government that is sincere and committed to serve its people with integrity and transparency,” he said.

He vowed that private enterprise will be able to operate in a climate that will allow them to grow and contribute to the alleviation of poverty.

According to Aquino, this week, the first 10 infrastructure projects will be offered for investments that are already on roll out in 2011.

“We are leveling the playing field for businesses, cutting red tape, streamlining processes undertaking the prioritization of key industries,” he said.

P&G, described by Aquino as an example of a responsible corporation, employs 135,000 people globally, operates in 80 countries and sells products in 140 countries.