URC earmarking $60M in '06 for expansion of beverage plants

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URC earmarking $60M in '06 for expansion of beverage plants

Posted: 12:03 PM Jan. 02, 2006Elizabeth L. SanchezInquirer
Published on Page B2 of the January 2, 2006 issue of the Philippine Daily Inquirer

UNIVERSAL ROBINA CORP. (URC), THE branded food firm of tycoon John Gokongwei Jr., plans to invest about $60 million to expand its beverage plants in the Philippines, industry sources told the Inquirer.

The sources said URC might also put up a beverage plant in Vietnam, as it embarked on the expansion of its beverage plant in Laguna and construction of a new factory in Pampanga.

URC is raising about $200 million through the offering of shares to international and local investors this year at a maximum of P18 a share, documents from the Securities and Exchange Commission (SEC) showed.

To support the expansion program, URC is setting aside about P5.5 billion in 2006 for capital expenditures. This will be partially funded through the proposed share offering.

Of the proposed budget, some P2.84 billion will be spent for the expansion of its branded consumer food operations , largely the beverage line, and its presence in international markets such as China and Vietnam.

URC is also allocating P2.37 billion out of its capex for the expansion of its sugar mill and refinery through Southern Negros Development Corp. The remaining P317.1 million will be used for additional manufacturing, machinery and equipment for URC's agro-industrial division.

After the success of its "C2" green tea brand, URC is set to launch a new fitness drink called "Rush", packaged in a blue bottle.

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