January 16, 2007
 

Aboitiz allocates P200M for construction of second feedmill plant

Aboitiz Equity Ventures Inc (AEV), the listed investment holding company of the Aboitiz family, is setting aside P200 million (US$4.09 million) for the establishment of a new feedmill in Iligan City.

AEV chief operating officer Erramon Aboitiz told the Philippine Star Daily that the new facility will be the group's second, next to the one in Tarlac which underwent expansion in 2005.

The new plant will have an estimated capacity of 10,000 tonnes of feed per month, Aboitiz said.

AEV, through wholly-owned unit Pilmico Foods Corp earlier sold to ABF Overseas Ltd. its stake in yeast producer Pilmico-Mauri Foods Corp for P100 million (US$2.04 million).

Pilmico-Mauri was formed in 1995 as a joint venture between Pilmico and Burns Philp Co of Australia to manufacture yeast and other bakery ingredients.

In 2004, Burns Philp sold its yeast division, including its stake in Pilmico-Mauri, to the parent company of ABF Overseas, UK-based multinational Associated British Foods Plc.

AEV said the divestment of its yeast business is in line with Pilmico's continuing efforts to further concentrate on growing its flour milling business and the feeds and swine businesses of its subsidiary, Fil-Am Foods Inc.

AEV also holds investments in banks and power generating sources in southern Philippines.