PHILIPPINES-FOOD GROUP EXPANSION PLANS.
San Miguel Corp., Southeast Asia’s largest food and beverage company, is allotting P9.93 billion for its food group expansion programs.
The company will be expanding its poultry and hog farms, among others, in support of its Feeding Our Future projects, Ramon Ang, San Miguel vice-chairman, said during a presentation to President Gloria Macapagal-Arroyo.
These projects aim to have "significant job-generation via San Miguel Food Group expansion programs and to develop 1 million hectares of government land for agricultural use."
Ang said all these project will be "greenfield" as existing plants no longer have rooms for the expansion.
"All projects are greenfield. These will be all over the Philippines," he said.
The Magnolia Poultry Farm expansion program will get P3.37 billion to boost its production of 188-million birds to 213-million chickens.
Monterey Hog Farm, which will get a budget of P4.89 billion, will increase production of 38, 765 sows to 48,765 sows.
Meanwhile, the B-Meg Animal Feeds Expansion Program will be allotted P840 million to hike production of feeds from 39.7-million bags to 43.5-million bags.
San Miguel will also put up a P215-million Magnolia Ice Cream Plant, which will produce 5 million gallons of ice cream, in Sta. Rosa, Laguna. Currently, Magnolia is outsourcing the production of its ice cream.
The nuggets line of Purefoods-Hormel Corp. will also be getting P231 million to produce 8,500 metric tons from its present capacity of 1,500 MT.
Other projects will also get P386 million.
All these projects are expected to create of up to half a million direct and indirect jobs, Ang said.
The Purefoods division alone will create 10,000 direct jobs and 50,000 indirect ones.
Ang also said the company has identified 1 million hectares of possible agricultural land that it will develop in Davao del Norte.
The hog farm, the San Miguel executive said, will also benefit about 60,000 hectares of corn farmers, besides creation of 1,000 direct jobs.
San Miguel will also be creating a synergy between two of its recently-acquired companies, Liberty Telecoms and Manila Electric Co.
Ang told the President that San Miguel is eyeing to provide high-speed internet access through the power lines.
"This is a new technology. We’re pushing this to Meralco to be part of its Vision and Mission. We will also try to help bring down the cost of electricity," said Ang.
He added that if Meralco will be able to find a new business through providing internet, electricity cost may be lower.
As for Petron, which San Miguel is originally eyeing to acquire in a period of two years since December 24, 2008, Ang said the company may be able to complete its acquisition within the year.
"Hopefully we can do it within the year," Ang said.
The conglomerate has budgeted $1.5-billion to $2-billion for its unsolicited proposal for the development of the Laiban Dam project.
Ang noted that the capacity of Laiban to produce 1,500 megawatts of power for free. The power may be used by Meralco as another electricity source.
Ang said with San Miguel’s good cash position, it is seeking for more investment opportunities in the Philippines.
"Our priority is to invest in the Philippines. If and when there is opportunity outside the country, that is considered second or third. (We are interested) in power, water. In mining, our priority is in coal and fuel but if there is an opportunity…that can give us a good cash flow…we will consider," he said.
