The Philippine Phosphate Fertilizer Corporation has a rich history, and its rehabilitation and growth are a testament to the country's commitment to revitalizing its industrial sector. The corporation was established in 1963 to produce phosphate fertilizer, a crucial input for the country's agriculture sector.
In 2012, the government took over the corporation and began a comprehensive rehabilitation program to restore its operations and improve its efficiency. This move was aimed at making the corporation a major player in the fertilizer industry once again.
The rehabilitation efforts paid off, and the corporation was able to increase its production capacity, allowing it to meet the growing demand for phosphate fertilizer in the country. This, in turn, helped to boost agricultural productivity and support the country's food security efforts.
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Business Operations
The Philippine Phosphate Fertilizer Corporation's business operations were heavily reliant on the country's phosphate deposits.
The company's main source of phosphate was the Pantabangan Reservoir, which provided over 85% of the country's phosphate needs.
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Its phosphate deposits were considered among the world's richest, with an estimated 200 million tons of phosphate reserves.
The company's operations were also supported by a dedicated workforce, with over 1,000 employees working at the company's facilities.
The corporation's phosphate production was primarily used to manufacture fertilizers, which were then sold to farmers across the country.
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Partnerships and Investments
Philippine Phosphate Fertilizer Corporation has made a significant partnership with Mabuhay Energy Corporation to secure reliable and competitively priced electricity.
This partnership will help reduce operational expenses and optimize energy consumption for PhilPhos, thanks to the Retail Competition and Open Access (RCOA) program.
The partnership was officially sealed in a ceremonial signing event at SEDA Makati Hotel, attended by key executives from both companies.
PhilPhos will benefit from lower electricity costs, allowing them to enjoy significant savings on their electricity bills while ensuring a stable and reliable power source for their operations.
Sherwin G. Hing, Chairman of Mabuhay Energy Corporation, expressed his gratitude and reflection on the company's journey leading up to this partnership with Philippine Phosphate Fertilizer Corporation.
This collaboration reinforces Mabuhay Energy Corporation's commitment to helping Philippine businesses reduce electricity costs, regardless of industry.
By switching to Mabuhay Energy, companies like PhilPhos can lower expenses, improve operational efficiency, and benefit from more cost-effective energy solutions.
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Rehabilitation and Privatization
The Philippine government's stake in Philphos was sold to Delphi Holdings for ₱3 billion in 2000.
Delphi Holdings paid the remaining ₱1 billion to the government in late 2002. This marked a significant shift in ownership for the company.
The Philippine government's decision to sell its stake in Philphos was made in 1995, following a waiver of first refusal rights by the Nauru government.
The rehabilitation of Philphos' plant complex in Isabel, Leyte began on July 1st, 2015, after it was damaged by super typhoon Haiyan in 2013.
Agrifields, a Dubai-based company, agreed to invest USD150-million to kick-start the rehab plan, with the entire complex re-insured by Lloyds of London for USD300-million.
Privatization of State Shares
The Philippine government's decision to privatize its shares in the company was a significant move in 1995. The Nauru government waived its first refusal rights to buy 45 percent of the Philippine government's stakes, and the remaining 5 percent was sold to small private investors.
In 2000, the Philippine government sold its stake to Delphi Holdings for ₱3 billion, payable within two years. This deal made Jose Alvarez the firm's chairman.
Delphi Holdings paid the remaining ₱1 billion to the government in late 2002. The company had been losing money for 18 years, incurring an average annual loss of ₱2 billion.
However, on the second year after the Delphi acquisition, the firm registered a profit of ₱300 million. This was a significant turnaround for the company.
By 2003, Delphi Holdings had bought an additional 10 percent stake of the PhilPhos from the Nauru government.
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Philphos Rehab Starts
The Philippine Phosphate Fertilizer Corporation (Philphos) will start rehabilitating its plant complex in Isabel, Leyte on July 1st. This comes after a successful talk with Dubai's G.S. Gupta, Chairman of Agrifields, who agreed to invest USD150-million to kick-start the rehab plan.
More than 400 employees were displaced following the devastation caused by super typhoon Haiyan, also known as Typhoon Yolanda, in 2013. Philphos Chairman Salvador Zamora expects to employ some of them as laborers during the rehabilitation.
The rehabilitation is expected to be completed early 2019. Philphos will be using the sulphuric acid byproduct from the Philippine Aluminum Smelting & Refining (PASAR) Company, which is also based in Leyte.
The country has been importing phosphate fertilizers to augment the shortage, after Atlas Fertilizer of Cebu's production was not enough. The Philippines used to be the biggest phosphate fertilizer exporter.
Philphos will also be manufacturing a strong construction component from the phosphate production byproduct, which is expected to bring down the cost of socialized housing under the Duterte administration.
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