JG Summit Olefins Inaugurates Newly Expanded Manufacturing Facility in Batangas  

Guest of honor Pres. Marcos cites JGSOC’s role in revitalization of local manufacturing

JG Summit Olefins Corporation (JGSOC), a pioneer in the Philippine petrochemical industry and the largest manufacturer of polyolefins in the country, inaugurated its expanded manufacturing facility in Batangas City on January 19, 2024, with President Ferdinand R. Marcos Jr. as guest of honor and keynote speaker.

The world-class integrated manufacturing complex is the nation’s largest wholly owned petrochemical investment and houses the first and only naphtha cracker plant in the country. The President toured the 160-hectare facility accompanied by JG Summit Holdings, Inc. (JGSHI) Chairman James Go, JGSHI President and CEO Lance Y. Gokongwei, and JGSOC President and CEO Arnel Santos.

In his keynote address, President Marcos lauded the expansion of the petrochemical facility and cited the strategic importance of the industry to the overall revitalization of Philippine manufacturing. “What you have built here is more than a cutting-edge technology. It is a testament to Filipino skills, a proof of business confidence, an example of manufacturing resurgence, and a realization of the vision of a great Filipino industrialist, the patriot John Gokongwei,” said the President. He later added, “It is among the lynchpins of our industrialization, a vital link in moving up the value chain, and guarantees the supply of a critical production ingredient. It is directly and indirectly employing 6,200 individuals. You are a major contributor to an industry that is forecasted to enrich our economy by 215 billion pesos next year.”

The JGSOC complex, which initially started with polyethylene (PE) and polypropylene (PP) polymers manufacturing in 1998, has continuously expanded its facilities over the years.

It produces the olefin raw materials ethylene and propylene, which are used as feedstock for its downstream PE and PP polymer plants. The cracker’s byproducts also include mixed C4 hydrocarbons and pyrolysis gasoline (pygas), which are in turn used in the production of C4 olefins and aromatic compounds at its butadiene and aromatics extraction plants, respectively. JGSOC markets its petrochemical products to over 30 countries worldwide.

 In 2023, JGSOC completed and started commercial operations of the final leg of its USD 1.3 billion expansion project, bringing overall site capacity to over 1 million metric tons of petrochemical products per year.

The expansion is a testament to the continuous innovation and development of the domestic petrochemicals industry and to the overall revitalization of Philippine manufacturing.

“This manufacturing complex, built at a cost of over Php 150 billion and completed through the twists and turns of close to three decades, represents one of our largest investments in a single business,” said Gokongwei. “This sizeable investment is born out of our firm belief that having a strong local petrochemical manufacturing base will support the revitalization of Philippine industry and help the country move up the global value chain.”

The complex helps the country project a favorable investment image, positioning the Philippines as committed to sustaining the growth of its domestic manufacturing industries.

The petrochemical industry holds strategic importance for the local economy as it supplies raw materials to other key sectors in the Philippines, thereby fostering the development of additional support industries. Its linkages provide multiplier effects on enterprises and the economy as a whole.

“Petrochemicals are essential building blocks to the most basic products Filipinos use in everyday life: packaging for food, fibers for clothing, materials used in paint and furniture for our shelter,” said Santos. “They’re important components of transport vehicles, water pipes and adhesives used in construction, pesticides, fertilizer, and even piping used in agriculture. They also play a big role in pharmaceuticals and items we need to take care of our health and well-being.”

A revitalized industry through a strong petrochemicals manufacturing base also helps create quality jobs for Filipino engineers and others with science, technology, and innovation-based specializations.

For more information on JG Summit Olefins Corporation visit jgspetrochem.com