CONGLOMERATE San Miguel Corp. (SMC) said it is spending $700 million (P34.97 billion) to build a packaging facility in its Davao industrial park that will include the country’s largest glass-manufacturing plant.
SMC President and COO Ramon S. Ang told reporters the company is putting up a glass plant with a capacity of 800 tons a day, two plant lines of 400 tons each.
The conglomerate’s packaging unit is folded under the San Miguel Packaging Corp. Its glass plant currently has a capacity of 200 tons per day.
“Most of the products will be for exports to America, Australia, New Zealand and Europe,” Ang said.
He said the company is building the plant in Davao as the location is very competitive. Power and raw materials there are both cheap, he said.
The conglomerate will break ground for the plant this year and will complete the plant in two years.
Ang said the plant will also have a plastic segment to produce pallets and crates. “We will also produce a big-cartons converting plant,” Ang said at the annual stockholders’ meeting of Ginebra San Miguel Inc.
Ang said the declaration of martial law in Mindanao will not affect future investments in the country’s second-largest island.
“We can invest more in Mindanao. It’s good for the business because I think the problem will be resolved fast,” Ang said.
Revenues of San Miguel Yamamura Packaging amounted to P6.8 billion for the first three months of the year, 5 percent higher than last year’s, on account of higher sales from its metals and plastics businesses and double-digit growth from its Australian operations.
Operating income rose 6 percent to P632 million.