PHOENIX Petroleum Philippines, Inc. has broken ground on an asphalt facility it is building with local and foreign partners in Calaca, Batangas.
The project, under Phoenix Asphalt Philippines, Inc., is the joint venture of Phoenix Petroleum with Thailand’s Tipco Asphalt Public Co. Ltd, and PhilAsphalt Development Corp.
“The groundbreaking for the asphalt facility is a big development in our plans for Phoenix Asphalt Philippines. This new venture maximizes synergies of our well-established business in fuels with the construction sector, as we aim to provide a better and improved quality of asphalt in support of the government’s Build, Build, Build campaign,” said Henry Albert R. Fadullon, Phoenix chief operating officer, in a statement.
The facility will be built at Calaca Industrial Seaport Park.
In January, the project partners announced their joint venture to form Phoenix Asphalt, which will manufacture, operate, market, and distribute asphalt, asphalt-related products and other by-products of crude oil, and other petroleum products, and operate terminals and depots in the Philippines.
Phoenix and Tipco Asphalt each have a 40% stake in the joint venture while PhilAsphalt has 20%.
Phoenix Asphalt is part of Phoenix Petroleum’s aggressive expansion plan, which included the acquisition of Petronas Energy Philippines, Inc. and Philippine FamilyMart, and the setting up of PNX Petroleum Singapore Pte Ltd. in 2017.
The listed company described Tipco Asphalt as the leading manufacturer and distributor of asphalt products in Thailand and the Asia-Pacific region.
Phoenix Petroleum has said that after the execution of the joint venture agreement, the parties are to contribute their share to the new company’s authorized capital stock, which it placed at about P275 million.
The incorporation of the new company will next call for the leasing from Calaca Industrial Seaport Park a parcel of land with access to its jetty and wharf facilities for the construction and establishment of a terminal.
On Tuesday, shares in Phoenix Petroleum climbed 3.39% to P12.20. — Victor V. Saulon
