THE Philippine Plastics Industry Association (PPIA) is calling for a comprehensive strategy on the plastics industry following the closure of the lone manufacturer.
Danny Ngo, PPIA honorary president, on Monday said the Department of Trade and Industry (DTI) should aggressively court foreign direct investment in domestic production of high-density polyethylene (HDPE), a key raw material used in manufacturing a wide range of products, from food and beverage containers to construction-grade pipes.
The DTI last month suspended the imposition of the definitive safeguard measure on imported HDPE pellets and granules following the shutdown of the country’s sole producer, JG Summit Olefins Corp. (JGSOC).
“The suspension of safeguard measures on HDPE resins following the closure of JG Olefins exposes the Philippines’ precarious dependence on a single source,” Ngo said in a text message to Malaya Business Insight.
Ngo added this vulnerability severely threatens the country’s downstream plastic industries.
He said the DTI should also help the industry in diversifying import sources to include reliable suppliers in Southeast Asia such as Thailand, Vietnam, Indonesia, and explore partnerships with established producers in the Middle East and Asia.
“The DTI and the Philippine government must urgently implement a comprehensive strategy to mitigate this risk,” Ngo added.
The DTI’s Department Administrative Order (DAO) No. 25-08, Series of 2025, dated July 11 and signed by Trade Secretary Cristina Roque, called for the halt of the additional duty that had been in effect for the past three years.
According to the order, the suspension will remain effective for the rest of the safeguard measure’s term, or until JGSOC resumes normal operations. JGSOC had a capacity to produce 160,000 metric tons of HDPE per year.
In January 2025, JG Summit Holdings Inc. announced the indefinite commercial shutdown of its petrochemical business due to adverse market conditions.
In February, JGSOC confirmed in a letter to the DTI that it had indeed implemented an indefinite commercial shutdown, though it expected to continue selling HDPE from existing inventory until the third quarter of 2025.
In 2022, DAO 22-13 imposed varying safeguard rates annually, with the third-year rate of P1,208 per metric ton taking effect on May 9, 2025.
In a separate statement dated July 31, 2025, PPIA and the Global Plastics Alliance (GPA) urged the Philippine government to help secure a Global Plastics Treaty that enables the rapid expansion of waste management and circular plastics systems.
The groups made this statement ahead of the second part of the fifth session in Geneva on August 4 of the Intergovernmental Negotiating Committee (INC-5.2) on a treaty to end plastic pollution.
“We are championing an agreement that has plastics circularity at its core and prioritizes providing proper waste management to the roughly 2.7 billion people who lack it. The agreement must be ambitious, feasible, and equitable for the developing world and countries with economies in transition, while enabling society to continue to benefit from plastics,” PPIA President Benjamin Chua said.
Chua said in addition to supporting the requirement for country-specific action plans within the treaty, “we call on the Philippines to develop a fit-for-purpose plan to support its transition to a circular plastics system.”
The GPA highlights the urgent need for convergence on key policy drivers —including well-designed extended producer responsibility schemes, mandatory recycled content targets, preventing high-leakage plastic applications, enabling trade in plastics waste, guidance on product design and proper recognition of the informal sector.
