JS Unitrade to open diaper factory in Philippines

Chinese-Filipino entrepreneur Samuel Po owned personal care company JS Unitrade Merchandise plans to open a new diaper manufacturing unit in Philippines with an eye at expanding in Southeast Asia.

The company, currently catering to the Philippines market, has its diaper manufacturing operations in China, which runs close to its full capacity.

With the opportunities in terms of regional expansion, the firm plans to set up a plant in Philippines market, thereby moving towards the goal of doubling its sales in the next four years from P5.3bn ($121.7m) of 2011 to P10bn ($229.7m) for 2012.

JS Unitrade President Samuel Po said the need for new capacity coupled with rising labour costs in China has prompted the firm to open a second manufacturing facility most likely in the Philippines.

"It will be a big investment. Definitely bigger [than the first facility in China] because we will transfer volume here," Po said.

Po added that China plant would be maintained as the company has plans to sell paper hygiene products; and the negotiations for the Philippine plant might start this year with the final decision depending on the ability to secure certain ‘investment incentives’ from the government.

JS Unitrade said that it recently starting selling diapers in Malaysia, and plans to sign a deal for Cambodian marker entry, while talks are going on to enter diaper market in Taiwan.

JS Unitrade, a subsidiary of First SLP Holdings, sells baby diaper brands EQ Plus and EQ Dry, adult diapers Caress and Dr. P and female hygiene pads Charmee.