August 9, 2018 – Jadel Holdings Co. Inc. (JHCI), the holding company of the Lao Family and the parent company of D&L Industries Inc. (DNL), will build a state-of-the-art research center that will be named Jadel Research Center (JRC). JHCI currently owns majority of DNL’s issued and outstanding shares.
JRC is envisioned to house new research initiatives in areas that are outside of DNL’s existing segments. It is meant to be a research platform allowing the group to explore potential growth areas without DNL taking significant risks. DNL, however, is strategically positioned to benefit from JRC’s research initiatives in areas that may complement its existing business segments.
JHCI sees JRC as a strategic and long-term investment. JRC aims to sustain its operations and generate returns on investment by selling or licensing successfully developed technologies. DNL has the option to be the licensee for customized products and technologies that are relevant and complementary to its existing business segments, while non-complementary products and technologies may be licensed to other companies outside of the D&L group.
While JRC will help ensure DNL’s long-term growth, the two entities will remain separate. Upon completion of JRC, DNL’s R&D initiatives will continue to focus on product innovation within its existing business areas. Meanwhile, JRC will have more freedom to explore evolving industries that may have significant future potential.
There will also be no overlap of talents as JRC will hire a new set of people for its operations. JRC will focus on pure research. All capex necessary to build and operate the facility will be shouldered by JHCI. DNL will have no financial or ownership stake in JRC.
JRC will be an eight-story LEED-certified building. The facility will have a gross floor area of approximately 20,000 sq.m. and will be located in Quezon City, Philippines adjacent to DNL’s headquarters. LBL Prime Properties Incorporated, the property arm of the Lao Family, will handle the project planning and construction. The project broke ground on August 8, 2018 with a target completion of late-2020. Operation is expected to commence by 2021. Total project cost is estimated at Php2 bn.
“We are very excited to embark on this strategic project,” D&L President & CEO Alvin Lao remarked, “We recognize that R&D is at the core of our business and represents the biggest source of earnings growth and margin expansion. This investment represents our family’s steadfast commitment to both R&D and innovation, allowing us to achieve sustainable growth in new and existing businesses and increase our relevance to customers.”D&L Industries is a Filipino company engaged in product customization and specialization for the food, chemicals, plastics, and aerosol industries. The company’s principal business activities include manufacturing of customized food ingredients, specialty raw materials for plastics, and oleochemicals for personal and home care use. Established in 1963, D&L has the largest market share in each of the industries it serves, as well as longstanding customer relationships with the Philippines’ leading consumer and chemical companies. It was listed on the Philippine Stock Exchange in December 2012. For more information, please visit www.dnl.com.ph.