JG Summit Starts Talks With Potential Buyers Of Batangas Petrochemical Plant

Conglomerate JG Summit Holdings Inc. of the Gokongwei Group has commenced talks with potential buyers of its Batangas petrochemical complex, which was placed on indefinite shutdown for at least two years in 2025.

JG Summit president and CEO Lance Gokongwei said on March 25 the group has “started discussions with potential buyers of the mothballed asset and are determining the best use of the Batangas complex.”

Last year, The Philippine STAR reported JG Summit’s potential exit from its petrochemicals business, with the company announcing that it is putting the plant on indefinite shutdown for at least two years, given the unfavorable market conditions in the global petrochemical industry.

Gokongwei told The STAR in an interview last year that the group will explore options “which include the full sale of the business, or a joint venture, or at least preserving it for at least two years, hoping that the cycle will turn around at some point.”

For potential buyers of the group’s petrochemical business, in case it goes on sale, he said previously that it should be someone looking at the Philippines as a manufacturing base for Southeast Asia.

Gokongwei said JG Summit in 2025 has recognized an impairment loss on its discontinued petrochemical operations.

JG Summit reported a net loss of P87.9 billion for the full year, reflecting the results of its discontinued petrochemical operations, which includes the P114.3 billion impairment loss booked by JG Summit Olefins Corp. after receiving board approval to write down its assets in the fourth quarter of 2025.

Still, the group capped off 2025 with a three percent year-on-year improvement in its recurring net income from continuing operations to P31.9 billion on the back of growing demand for travel and leisure alongside strong consumption.

JG Summit saw revenues from ongoing businesses during the year rise by nine percent to P368.6 billion as a result of the double-digit growth in its airline and real estate subsidiaries, coupled with a steady volume-driven topline increase in its food and beverage arm.

The absence of the P7.9 billion gain recognized in 2024 on its bank merger transaction, however, pulled down core net income and net income from continuing operations by 11 percent and seven percent year-on-year to P36.4 billion and P36.1 billion, respectively.

Excluding these one-off gains, JG Summit said it closed the year with recurring net profits of P31.9 billion.

“Our 2025 performance reflects the resilience of our portfolio, supported by sustained consumer demand and continued strength in our leisure-related businesses,” Gokongwei said.

Looking ahead to 2026 amid heightened global uncertainty, he said the group is taking a prudent and disciplined approach, which include prioritizing cash flow protection, balance sheet strength and operational efficiency.

“At the same time, we remain focused on long-term value creation as we continue to advance our parent transformation, with our business units refining their value creation plans under clear governance and investment guardrails informed by our portfolio review,” Gokongwei said.