Construction firm pivoting to making PPE seeks perks

A construction firm has registered more than P858 million with the Board of Investments (BOI) to produce personal protective equipment (PPE) in another show of investor interest to shift to PPE making in the time of Covid-19.

BOI’s Industry Development Services Executive Director Ma. Corazon Halili-Dichosa disclosed a construction firm in September applied to secure fiscal incentives from the government for its P858.41-million investment in PPE making. Although she did not name the investor, she said its project has the capacity to manufacture millions of PPEs every year.

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In an interview with the BusinessMirror, Dichosa said the firm used the investment to repurpose its facilities and begin commercial production in September.

Based on BOI data, the firm can now make 3.6 million coveralls, 3.6 million lab gown sets and 3.6 million medical aprons for health respondents yearly. Likewise, it can now put out 6 million KN95 masks, 6 million N95 masks and 3.6 million surgical masks.

If the BOI approves the application, the firm will get four years of income tax holiday, as well as duty free importation of capital equipment, under the Investments Priority Plan.

Further, the firm may avail of exemption from payment of import duties, taxes and fees for the importation of raw materials and equipment for the manufacture of Covid-19 critical goods. A joint memorandum circular may soon be issued to authorize the exemption, which is provided under the second Bayanihan to Recover as One Act.

Dichosa pointed out the investment adds up to the $35 million, roughly P1.69 billion, spent by a group of local manufacturers who repurposed their facilities in response to the government’s plea to make PPEs for health workers.

Dichosa admitted the BOI has no record of how much the private sector poured in for projects on PPE making. She said firms that decided to produce pandemic essentials, particularly PPEs and face masks, proceeded without registering for incentives.

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The BOI official said the agency provides PPE manufacturers with technical support in making sure their products land are bought either here or abroad. According to Dichosa, the BOI assists them in qualifying for domestic bidders preference that will allow them to participate in government procurement. On export, it works with the Foreign Trade Service Corps of the Department of Trade and Industry, in trying to bring local PPEs to the United Nations Global Marketplace.

“The local demand of a population as big as ours plus the demand in the export market would make for a viable proposition for companies to continue this business,” Dichosa argued.

For the BOI, efforts to boost the national output for PPEs and face masks should be sustained, as the Covid-19 drags on with no end in sight. Based on a survey in June, at least 83 percent of firms that repurposed their facilities said they intend to continue making PPEs.

There are now 22 face mask manufacturers in the country, nine of which can produce medical grade N88 and KN95, from only two before the pandemic. The firms who can make face masks for medical use can supply 60.6 million pieces per month.

Prior to the contagion, the country can prepare just 6 million pieces monthly, according to data from the BOI.

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On PPEs, there are now 17 firms that can tailor coveralls, isolation gowns and medical aprons. The Philippines has no capacity to make PPEs before the health crisis, but it can now put out 3.5 million pieces per month.

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Article originally posted by Business Mirror last October 7, 2020 and written by Elijah Felice Rosales.

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