PSi expansion project gets PEZA incentives

The Nasdaq-listed PSi Technologies Laguna Inc. (PSi) will get incentives from the Philippine Export Zone Authority (PEZA) for its P344.6-million expansion project in Camelray Industrial Park in Laguna.

PEZA said it has approved PSi's application for incentives for its expansion project involving the manufacture of rectifier devices to add to its existing product lines for export.

According to PSi, it has started building improvements on its existing facility in Camelray and is gearing up for the arrival and installation of machinery for the new line this April.

After a trial run this month, PSi plans to start commercial operations of its new line by May 2000.

The project will require an additional 224 new employees on its first year and up to 526 more on the fifth year, most of whom would be directly employed in the production line.

PSi is a subsidiary of the food and beverage giant RFM Group and was listed at the Nasdaq board of the New York Exchange last March. The company offered 3.5 million shares at $16 per share.

The company is an assembler and test service provider for the semiconductor industry, with a clientele that includes Motorola Inc., Texas Instruments, Hewlett-Packard and National Semiconductor.

PSi's Nasdaq listing was expected to generate about $56 million to $65 million for the company which officials said would be used for its expansion projects that would focus on design, assembly and more test services for power semi-conductors used mostly in telecommunications and network systems.

PSi also plans to use part of the proceeds to retire some $15 million worth of debt that would mature this year.

Following its Nasdaq offering, the RFM Group's holdings in PSi declined to 37 percent, but its other major stockholders, Merrill Lynch and the Nomura Group, retained their stake.

PSi was underwritten by Chase H&O together with Robertson Stephens and Thomas Weisel Partners.