November 18, 2009
Capital expenditure programmes for Purefoods looks to gain momentum
San Miguel Purefoods Company looks at rapid expansion, both physically as well as its feed production capacity.
San Miguel Pure Foods' integrated operations range from breeding, contract growing, processing and marketing of chicken, pork and beef to the manufacture of refrigerated, canned and ready-to-cook meat products, butter, cheese, margarine, oils and fats, as well as animal and aquatic feeds. Aside from this, the company is expanding its poultry and processed meat business. Purefood's president Francisco Alejo said its parent firm San Miguel remains in talks with US food maker Hormel Foods Corporation and other foreign groups for the sale of at least 40 percent of Purefoods.
Elaborating, Alejo said San Miguel's strategy is to maintain majority control of the businesses. As early as last year, the company announced plans to sell a portion of its major subsidiaries through strategic partnerships or a share offering and retain 51 percent as diversifies into heavy industry.
Hormel owns 40 percent of processed meats firm The Purefoods-Hormel Co, a subsidiary of Purefoods.
In April, San Miguel announced a P9.93-billion (US$212.47 million) capital expenditure programme for its food group with bulk of it or P4.89 billion going to the expansion of its hog farms and another P3.37 billion to beef up its poultry operations.
About P840 million has been set aside to raise the production of feeds from 39.7 million bags to 43.5 million bags.
The nuggets line of Purefoods-Hormel Corp. will also be getting P231 million to produce 8,500 tonnes from its present capacity of 1,500 tonnes.
US$1 = P46.71 (Nov 18)
