The original company, Chemical Industries of the Philippines, Inc.
(CIP), was incorporated in 1958 to operate Dr. Garcia's 30 MT/day
sulfuric acid plant. By 1967, it had expanded to two 100 MT/day
sulfuric acid plants and became the first Filipino company to manufacture
Oleum, aluminum sulfate, ammonium sulfate and
In 1968, E. S. Garcia Development Corporation (ESGAR)
was formed to manage Dr. Garcia's various agricultural projects.
During the next decade, an aggressive development program was initiated to increase Chemphil's interests particularly in detergent chemicals. The first new venture was
LMG Chemicals Inc. (LMG), which was incorporated in 1970 to become the pioneer company to produce
alkyl benzene in Southeast Asia. This project brought in its first major foreign investor when
Tomen Corp. then
known as Toyo Menka Kaisha, Ltd. of Japan took a significant equity position in
In 1971, Polyphosphates Inc. (PPI) was established. Under the government's Investment Incentives Act, it became the pioneer manufacturer of detergent phosphates in the ASEAN region.
The Group's real estate interests were organized under
Amarem Realty Corporation (ARC) in 1975. The Chemphil Building was constructed in Makati the following year to be the Group's headquarters.
In 1980, Albright & Wilson of UK, one of the largest chemical companies in the United Kingdom purchased 40 % of
PPI and entered into a Joint Venture agreement to develop the detergent
phosphates industry in the country.
During the 1980's, Chemical Industries of the Philippines reorganized
and rationalized its manufacturing and investing activities in their
respective corporate structures. The sulfuric acid manufacturing
and related-activities - were lodged under a new corporate structure
under the name of Chemphil Manufacturing Corporation (CMC) incorporated
in 1981. (In 1988, CMC and LMG were merged to form
Inc. (CLI) and later changed its name to LMG Chemicals
CIP was left as a parent company of what is now known as the
Chemphil Group of Companies - (Investment Division) and as the provider of shared services
(Management Division) to the Group. However, in 1989, CIP absorbed the agribusiness activities of
ESGAR and took over the real estate assets of AMAREM through a series of mergers.
Chemical Industries of the Philippines ceased to be a 100% family- owned corporation. Corporate stockholders acquired the shareholdings of individual family members. These are, respectively,
Chemholdings Corporation, Philippine Indochem Corp. and
Chemphil Export and Import Corp.
In March 1993, CIP saw the establishment of
Corporation (PEC). Today, the joint venture remains solid between
Chemical Industries of the Philippines and Perfumeria Gal S.A. of
Spain. With the entry of PEC, a whole range of personal care products
of Perfumeria Gal, were added to the world famous 'Heno de
which was taken over by PEC from the erstwhile Philippine distributor
In the mid-90's, the Chemphil Group embarked on another first. Along with a number of industrialists and investing companies. Jointly,
CIP, LMG and CAWC - the Chemphil Group - is now a significant
investor group in Petrochemical Corporation of Asia-Pacific (Petrocorp).
Petrocorp manufactures polypropylene resins for downstream industries - such as the plastic manufacturers.
- with its world-class polypropylene plant (built under a license agreement with BASF for its technology) is recognized by the government as a major flagship industrial project.
ushered in the Philippine Petrochemical Industry.
In 1998, the latest joint venture company in the Chemphil Group
came to being. CIP signed a joint venture with Kemira Oy of Finland.
With the rationalization of and development program for the country's
waterworks and sewerage systems - Kemwater Philippines Corp.
hopes one day to play a major role as a leading manufacturer of
water treatment chemicals to serve this industry.
On 23 October 2007, the Board of Directors of LMG Chemicals Corp.
approved a resolution for the transfer of its properties as follows:
Properties located in Pasig (the 'Acid' Plant) and Taguig Cities,
and San Pascual, Batangas, other assets and liabilities to Chemphil
Pinamucan, Batangas, (the 'tank farm'), other assets
and liabilities to LMG Land Development Corp.
The purpose of the transfer is to consolidate the acid plant and tank
farm operations into individual holding companies for better management
and monitoring of operations.
It's worth emphasizing
that both Chemphil Marketing Corp. and LMG Land Development Corp.
are wholly-owned subsidiaries of LMG.
During the transfer, the Chemphil Marketing Corp. also filed an
application with Securities and Exchange Commission (SEC) a request
to change the corporate name of Chemphil Marketing Corp. to Chemphil
On 08 February 2008, the SEC approved and granted the request of Chemphil
Marketing Corp. and thus, its new corporate name is now Chemphil
Manufacturing Corp. (CMC).
Additionally, on 15 August 2008, LMG and LMG
Land Development Corp. (LMG Landco) together with Chemical
Industries of the Philippines, Inc. (CIP), the holding company of the Chemphil
Group and its affiliates including LMG, CMC and LMG
Landco, entered into a Shares and Asset Purchase Agreement with
Chemoil Fuel Philippines, Inc. and Chemoil Energy Philippines,
Inc. to sell and transfer the entire LMG shares in LMG Landco and to
sell the property owned by CIP in Pinamucan, Batangas to Chemoil Fuel
Philippines and Chemoil Energy Philippines, Inc., respectively.
Hence, at this time, LMG is a holding company which owns 100 %
of CMC 100 % and 60 % of Kemwater
Phils. Corp. (KPC).
|In the beginning of
2008, the Management of Perfumeria GAL S. A. (GAL), the
joint venture of CIP in PEC, decided to cease all
its business activities in the Philippines and Asia and to focus
mainly on its business operations in Europe and in the US. In
the Special Board Meeting held on May 26, 2008, GAL made an
offer to CIP to sell to CIP the entire 51% shareholdings of GAL
n PEC and for CIP to exercise its Right of First Refusal. CIP
Board, however, decided to decline this offer since CIP Board is
of the opinion that the Personal Care Products business is not a
core business of the Chemphil Group. GAL's shares were then
offered to a group of private business individuals. Sale to the
said private individuals became effective on June 27, 2009.
Further, in the Board Meeting
of CIP held on November 25, 2008, the CIP Board approved the
sale of the entire CIP shares of 49% in PEC to the same set of
private business individuals subject to certain terms and
Upon fulfillment of the said
terms and conditions, PEC will cease to be an affiliate company
under the umbrella of the Chemphil Group.
|In the Special Board
Meetings of CIP and the other affiliates (CAWC and
LMG) held on November 25, 2008, the respective Boards
approved to write-off the investments of the said companies to Petrocorp
with 100% allowance.