May 4, 2012

A unit of Alliance Select Foods International Inc (ASFII) has obtained a license from Indonesia to catch fish in its territorial waters.

Alliance Select Foods disclosed to the stock exchange that its tuna processing subsidiary PT International Alliance Food Indonesia (PTIAFI) has established PT Van de Zee, which recently secured the license and allocation for capture fishing in Indonesia's exclusive economic zone (EEZ) -- the first foreign investment company to be granted such a licence and allocation there.

The company has "just achieved a major breakthrough in achieving self-sufficiency in terms of raw fish supply," ASFII said.

For 2012, the Indonesian Ministry of Fisheries and Marine Resources gave PT Van de Zee an initial allocation of 5,000 tonnes. Once having fulfilled a five-year vessel acquisition programme, PT Van de Zee will have a potential allocation of 30,000 tonnes of tuna by 2016.

"This means that by that year, PT Van de Zee would be able to fully support a 100% capacity utilization of PTIAFI's processing plant, which has a capacity of 90 metric tonnes per day," Alliance Spokesperson, Rajat Balain, said.

The company expects PT Van de Zee's yield of 30,000 annual tonnes of tuna by 2016 to generate an annual gross revenue of US$66 million, based on a present value of US$2,200 per tonne.

"The allocation gives PTIAFI a very high competitive advantage in an industry whose biggest challenge is access to raw material resource," Alliance said.

PTIAFI owns an 80% share of PT Van de Zee, the maximum holding allowed for foreigners under Indonesia's capture fishing law. PT Van de Zee's operations will be integrated with PTIAFI's tuna processing operations.

Alliance Select, formerly known as Alliance Tuna International, Inc (ATII), started running commercial activities in General Santos City in 2004. The company is engaged in tuna processing and canning, and the export of canned tuna products to Europe and North America.