SAN MIGUEL Brewery, Inc. (SMB) on Monday said it will break ground for a new production facility in Leganes, Iloilo this month, as part of a bigger plan to establish more breweries around the country in order to boost capacity and reduce logistics costs.

In a statement, SMB said the new production facility, located in Barangay Gua-an, will have an initial capacity of one million hectoliters. The brewery is expected to be completed within two years.

The Iloilo brewery will be SMB’s third in the Visayas region. The company established breweries in Mandaue and Bacolod in 1968 and 1990, respectively.

Parent company San Miguel Corp. President and Chief Operating Officer Ramon S. Ang will lead the groundbreaking ceremony on Sept. 20

“We look forward to growing our presence in the Visayas region. This major development is an important part of San Miguel’s current expansion in key regions nationwide… With this investment, we hope to help accelerate the region’s overall growth and bring more jobs,” Mr. Ang was quoted as saying in the statement.

The company is in the midst of a capacity expansion program “to grow its core business, meet increased demand, and bring economic growth and jobs to key regions nationwide.”

Aside from the Iloilo facility, SMB is on track to complete a brewery in Tagoloan, Misamis Oriental. It is also converting its existing Santa Rosa, Laguna bottling facility into a brewery.

“(The Iloilo facility) is a significant milestone for our company as we continue to pursue new growth opportunities. Over the long-term, this new facility will allow us to address growing demand and maximize efficiencies throughout the supply chain,” SMB President Roberto N. Huang said in the same statement.

With its flagship brand San Miguel Pale Pilsen, SMB dominates the beer industry with a 95% market share. Its breweries are located in Valenzuela, Pampanga, Mandaue, Davao del Sur and Bacolod.

SMB is one of the units under San Miguel Food and Beverage, Inc. (SMFB), alongside Ginebra San Miguel, Inc. The food business comprises of San Miguel Foods, Inc.; San Miguel Mills, Inc.; The Purefoods-Hormel Company, Inc.; Magnolia, Inc.; and San Miguel Super Coffeemix Co., Inc.

In the first half, SMFB reported its net income attributable to parent fell 16% to P7.78 billion, from P9.26 billion a year ago.