Domestic manufacturers are urging the continued operation of the Gokongwei-owned JG Summit Olefins Corporation (JGSOC), as its USD 2 billion petrochemical complex in Batangas undergoes evaluation for possible acquisition, sale, relocation, or joint venture.
Industry leaders stressed that maintaining the plant’s operations is critical to the country’s industrial resilience and long-term economic development.
Roberto Batungbacal, director of the Federation of Philippine Industries (FPI), said, “We are hoping they can find an investor to continue this operation because the Iran and Covid crisis have taught us the importance of having our own domestic production for resiliency.”
Batungbacal, a chemical engineer and long-time industry leader, raised concern following reports that JGSOC has appointed International Process Plants (IPP) to handle the global marketing and sale of its Batangas facility. He has over 30 years of experience with global material science companies such as Union Carbide, Phillips Petroleum, and Dow Chemical, and currently serves as Vice President for Industry Development at SteelAsia Manufacturing Corporation, the country’s largest steel manufacturer.
Batungbacal noted that the Gokongwei’s Batangas petrochemical complex is the most integrated facility of its kind in the Philippines, with a naphtha cracker and polypropylene and polyethylene production units. However, it has remained idle for the past two years due to the global slump in polyolefins (PE and PP).
The potential permanent shutdown of JGSOC raises serious concerns for the industry.
“We are left with only one – the Philippine Resins Industries, Inc. (PRII) – which produces polyvinyl chloride (PVC). If the JGSOC plant will completely stop operation, the Philippines will be totally dependent on for Polyolefins – the most used synthetic and commodity thermoplastic in the world.
JGSOC’s Batangas facility spans 160 hectares and represents a USD 2 billion investment. It operates a feedstock stream cracker designed to produce 1.5 million metric tons annually, supporting downstream production of polyethylene, polypropylene, butadiene, benzene, and other key petrochemical products.
