News last update:6 Aug 2012

Aboitiz Group expands its feed mills

Animal feed manufacturer the Aboitiz group is expanding its feed mill operations to Iligan City in the Philippines to supply customers in the Visayas and Mindanao areas, according to CEO Jon Ramon M. Aboitiz.

The expansion of their subsidiary Pilmico Foods' feed mill to Lanao del Norte is needed to support growing demand in the south and to reduce pressure on its Tarlac mill, which has been operating at full capacity, according to Mr Abiotiz.

He further added that "Construction of the Iligan milling complex, with a capacity of 10,000 t/month began in June last year and will be finished in two months. It will be operated by our Fil-Am Foods.
In addition the Aboitiz group will also expand Fil-Am Foods' pig farms by building new finishing and breeder facilities in Tarlac. These will be commercially operational by 2009 and 2010, respectively. Pilmico and Fil-Am Foods will spend Peso 900 million (m) for both capacity expansion projects. In addition, the company will build more grain silos this year to give Pilmico the largest flourmill storage capacity in the Philippines."

At the end of March the two Aboitiz subsidiaries income distribution grew 20% to P156 m year on year. Revenues of its flour business rose 28% from a year ago due to higher selling prices. Fil-Am Foods' income grew by 125% due to strong volume sales for its pigs business and favorable prices for both pigs and feeds.

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