Leading FMCG Company to Ramp Up Its Production With New Factory
Unilever Philippines recently opened a new production warehouse in Cavite to ramp up its factory production by 15% and likewise offer more regional jobs.
In the third quarter of 2022, the fast-moving consumer goods (FMCG) industry in the Philippines held the highest market share in the country at 47.8%. This industry often covers essentials like milk, bath soaps, shampoo, condiments, toilet paper, and other food products.
One of the leading FMCG brands in the country is Unilever Philippines, which has produced many brands that Filipinos use to this day. What’s more, just recently, the company inaugurated one of the largest Beauty & Wellbeing and Personal Care (BWPC) factories in Southeast Asia.
To make it possible, the company invested €80 million (around PHP4.7 billion) in their state-of-the-art facility. Here, they aim to ramp up the production of products like Sunsilk and Creamsilk—as well as deodorant lines like Rexona and Dove.
Accommodating the Growing Marketplace
The Philippines is one of Unilever’s top-ranking markets in the world. Along with that, the demand for beauty and personal care products has also seen consistent growth.
“Our investment in the new factory is anchored in our purpose to meet the needs of consumers and our customers. Emerging markets contribute 59% to Unilever’s global turnover and the Philippines remains an important market and growth driver for the company,” says Unilever Philippines Chairman and CEO Benjie Yap.
According to a June 2023 consumer study on FMCG manufacturers, Unilever ranks fifth in terms of value growth. In terms of production, 90% of Unilever Philippines’ products are manufactured locally—compared to other FMCG companies that opt to have their products imported.
By working with local suppliers, the company manages to reduce emissions and invigorate the local supplier base as they create direct and indirect employment opportunities. And by opening the new production warehouse in Cavite, they can leverage such benefits even more.
This also provides them with more ease, as it’ll be closer to key suppliers and the company’s distribution center, thus speeding up delivery.
Investing in Sustainable Growth
The facility will be incorporating geothermal and solar power into its operations. This puts it in line with the other Unilever factories, offices, and distribution centers that are powered by 100% renewable energy.
“We remain optimistic about our prospects for growth in the country. Through the next century, Unilever will continue to make products that address our consumers’ concerns and needs, and positively impact lives and livelihoods,” Yap said.
“To see this project come to fruition after just several months is encouraging. It also inspires me, and the rest of the government, to work even harder for the Filipino people,” President Marcos, who visited the site, chimed in. “That such an important facility as this is here in the Philippines, I’m sure it will help to encourage other groups to come in and do the same.”
Opening more production warehouses brings a lot of advantages to companies as it signifies growth and provides them with more space to accommodate the demand for their products. Also, facilities like this serve as an example for companies around the country to integrate sustainable practices into their production in a move to help the environment.