PHILIPPINES RESINS Industries, Inc. (PRII) has tapped the construction arm of the Aboitiz Group to undertake the expansion of its polyvinyl chloride (PVC) resin plant in Bataan. In a statement issued on Thursday, Aboitiz Construction, Inc. (ACI) said it has signed a memorandum of agreement with PRII for the project that would double the capacity of the latter’s plant to 200,000 metric tons per year.
The resin plant expansion will include the structural, mechanical, piping, and civil works components, and expected to be finished in 18 months.
“In so doing, PRII will be able to better serve the domestic market,” ACI said.
In statement by PRII released in January this year, the company said it will be spending $44 million for the expansion of its plant in Bataan.
“Upon completion in December 2018, the new facilities are expected to add 110,000 metric tons a year to and thereby double PRII’s PVC production capacity, further strengthening its reliability as a PVC supplier in the Philippine market,” PRII said in a statement posted on its Web site earlier this year.
PRII is part of the Tosoh Corp. Group of Japan that started operations in January 1999. Its Bataan plant is the company’s only manufacturing facility in the country, which it uses to meet the demand of local PVC product manufacturers, according to its Web site.
The partnership marks the second time that the two companies have teamed up, as ACI also constructed PRII’s plant in 1998, at the time when ACI was still known as Metaphil.
ACI forms part of the Aboitiz Group of Companies, which has core investments in power distribution, generation, and retail electricity supply, financial services, food manufacturing, real estate, infrastructure, and portfolio investments — all held under Aboitiz Equity Ventures, Inc. (AEV).
AEV posted a 6.9% decrease in attributable profit to P15.9 billion in the first nine months of 2017, amid a 27% increase in gross revenues for the period to P111.48 billion.
Shares in AEV were up by 2.63% or P1.80 to close at P70.20 at the stock exchange on Thursday. — Arra B. Francia