D&L Industries Statement on Chemrez Inc.

Quezon-(PHStocks)-On 22 November 2015 at 1:48pm, vapor generated by the polymerization process at the polystyrene plant of Chemrez Inc. in Bagumbayan, Quezon City, resulted in an unpleasant odor spreading out of the plant site to the surrounding areas.

As of 23 November, 6 a.m., fumes had been under control in the immediate vicinity. The Company continues to spray water over the tank to dilute vapor and dissipate the odor. As of 8 a.m., reports indicate the odor has continued to weaken.

In light of recent events, operations at this plant (one of the six plants of D&L Industries) are currently suspended, which may likely be extended for 2-3 days. The suspension will affect 35% of Chemrez’s production or about 10% of D&L Industries’ total production. Impact on sales is likely negligible.

Chemrez Inc. is a wholly-owned subsidiary of Chemrez Technologies, which is one of the wholly-owned subsidiaries of D&L Industries. As of the first nine months of 2015, Chemrez Technologies contributed 33% and 32% to D&L revenues and net income, respectively.