MANILA, Philippines - Holding firm Aboitiz Equity Ventures is spending approximately P900 million for the expansion of its feed mill in Iligan City, Lanao del Norte and swine farms in Capas, Tarlac.
AEV president Jon Ramon Aboitiz said the company was finalizing construction of its new feed mill in Iligan with completion expected by July.
"The reason we're doing that [expansion] is because we have a large increase in demand from the south. Right now we have to ship in from our plant in Tarlac so with the expansion, it becomes more efficient to service the Visayas and Mindanao areas," Aboitiz said.
The feed mill will have a production capacity of 10,000 tons a month.
AEV's flour manufacturing unit, Pilmico Foods Corp., earlier signed a P500-million, five-year loan with Security Bank Corporation (SBC), to support the company's feed mill expansion in Iligan to be operated by its subsidiary Fil-Am Foods.
As one of the country's largest flour milling companies, Pilmico Foods has been making wheat flour and related products since 1962.
Making up its flour brands are Sun Moon Star, Sunshine, Glowing Sun, Kutitap, Megastar, Gold Star and Wooden Spoon.
Its line of feed ingredients includes Hard Swine Base Feeds, Soft Swine Base Feeds, Wheat Germ and Pollard.
A new feed mill will allow production of complex animal feeds from a variety of raw materials including Pilmico's flour.
Fil-Am Foods currently makes simple swine base feeds as a by-product of its core flour milling operations.
The feed mill expansion is expected to strengthen Fil-Am Food's presence in the complex feeds market.
Aboitiz also said the group was expanding its swine farms in Tarlac.
Fil-Am Foods signed last year a P250-million, seven-year term loan also with Security Bank.