URC allots P5.6B for expansion

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URC allots P5.6B for expansion
Posted: 1:34 AM | Apr. 24, 2006

Inquirer

Published on Page B6 of the April 24, 2006 issue of the Philippine Daily Inquirer

 

UNIVERSAL ROBINA CORP. (URC) SAID IT was keeping its target of spending P5.6 billion this year to expand its branded food line, international product lines and sugar mill, URC president Lance Gokongwei said following the company's stockholders' meeting last week.

 

Gokongwei said that in line with its international expansion, URC would continue to expand its product lines in Thailand.

 

Locally, URC is targeting to raise sugar milling capacity to 5,000 tons of cane a day this year from 4,500 tons. It plans to further increase this capacity to 9,000 tons a day in 2007.

 

URC earlier said it was also allocating P2.37 billion out of its expenditure budget to expand its sugar milling and refinery through Southern Negros Development Corp.

 

Aside from the sugar mill, some P2.84 billion of URC's capital expenditure will be spent to expand its branded consumer food operations, specifically its beverage line, as well as grow its presence in international markets such as China, Asean countries.

 

In the beverage segment, Gokongwei said URC launched a few weeks ago a manufacturing plant for its successful C2 green tea product in Vietnam.

 

After the success of its C2 green tea brand, URC also launched Bull Fighter, a new energy drink, and Rush, a fitness drink.

 

Meantime, URC claimed that the Pasig City government's closure of URC's chocolate plant in Bagong Ilog, Pasig City, was "unjustified and had no legal basis." URC said it would meet with the Pasig City government to immediately lift its order. Roughly 900 workers of the plant will be affected by the plant's closure. URC claimed the plant has passed all air emission standards.

Elizabeth L. Sanchez