Phillipines - A Filipino-American firm is investing P70.39 million for the establishment and operation of a plant that will provide toll-manufacturing of marine feeds for San Miguel Foods Inc. (SMFI).
557 Feather Meal Corp. will produce aquatic feeds out of agricultural waste and byproducts such as feathers, carcass trimmings, condemned carcasses and internal organs of animals.
The raw materials will be supplied by SMFI, which will also be the sole buyer of the feed products.
The company, which is 90-percent owned by Filipinos and the remaining 10 percent belonging to an American businessman, will source the investment from a combination of equity and financing.
The Board of Investments (BOI) approved the grant of nonpioneer incentives to the Tarlac-based project, qualifying it to a host of fiscal and nonfiscal incentives such as duty-free importation of capital equipment and raw materials and income tax holiday of up to four years.
“The pursuit of this project is encouraged because corporate manufacturers could save money generated from linear linking. These savings could, in turn, be reflected as lower prices for consumer goods,” the BOI said.
The toll-manufacturing project, with a capacity of 2,134 metric tons, will employ 3,708 personnel once it starts commercial operations in January.
The BOI also approved the grant of nonpioneer incentives to the livestock feeds manufacturing project of Dan Way Processing Corp. in San Miguel, Bulacan worth P82.4 million.
Products will be sold to customers in Bulacan, Pampanga, Tarlac and Nueva Ecija. It is set to begin operations this month and will hire 71 persons.