Chemical firms to delay expansion until peso weakens

April 7, 2013 6:30pm


Chemical manufacturers will delay their expansion plans until the peso depreciates to P43 or P44 to the US dollar, the Philippine Exporters’ Confederation, Inc. (PhilExport) said in a statement over the weekend.

"The exchange rate is always a problem; it is getting harder and harder to cope with. Naturally, if you realize that your income is going to get lower and lower, why invest in the future? It is as simple as that,” the statement quoted PhilExport trustee for the chemicals sector Oscar A. Barrera as saying.

"[Expansion could] take some time depending on how fast the peso goes to P44 or P43. Based on our internal survey among exporters, this is the livable rate for them to start again and expand," he also said.

However, Barrera still sees the local chemicals sector growing by 5 percent this year.

“We are surviving. Our exports seem to be right because our markets are mostly multinationals abroad. Our biggest markets are companies in the Middle East, chemicals and plastics are still acceptable there,” he said.

A dollar fetched P41.16 at the close of trading last Friday. — BM, GMA News