February 28, 2012

Chinese firm moves to Philippines' Cebu for fish exports

An agro-industry investment project from China amounting to PHP86.25 million (US$2.01 million) will transfer in Mandaue, Cebu, Philippines according to the local Trade Department.

Trade Undersecretary and Board of Investments managing head Adrian Cristobal Jr. said the project is expected to further boost the Philippines' agribusiness industry.

"Agribusiness is a key sector under the Investments Priorities Plan that will generate income and jobs in the rural areas. We are actively engaging China as a high-growth emerging market both for exports and investments," Cristobal said.

The project will involve production of frozen fish fillets for exports, according to BoI data. It will have a capacity of 2,250,000 kilogrammes for export annually and is expected to generate 256 jobs once commercial operations start in May this year.

The project also involves acquisition and installation of equipment such as tunnel freezers, cold storage, air conditioning, generators, vacuum-packaging machines, and wastewater facility.

Packaging materials for the project will be sourced locally including corrugated cartons and plastic sacks. The fish products will be sourced from suppliers in Norway, Japan, New Zealand, Argentina and the Netherlands.

Approved investments in agribusiness and related industries amounted to P2.271 billion in 2010, based on reports from different investment promotion agencies. Attracting Chinese firms to relocate to the country is one of the strategies in the Philippine Exports Development.

Agriculture and related industries are listed under the BoI's Investments Priorities Plan 2011, which also includes tourism, shipbuilding, mass housing, energy, infrastructure, research and development, motor vehicles, green projects, creative industries, disaster prevention, and public-private partnership.