Del Monte sets P172-M expansion

Del Monte is investing P172.04 million to fortify its position as the country’s number one exporter of fresh pineapple.

Del Monte is planning to expand its Gold Fresh Pineapple production in Subasta, Baguio District and Calinan in Davao City.

Del Monte is doing its expansion through its local subsidiary Davao Agricultural Ventures Corp. (Davco).

Davco, which is engaged in the production and export of fresh pineapple under the Del Monte Label for intenational markets such as Japan, Hong Kong, Korea and New Zealand, is 40 percent owned by Del Monte Fresh Fruit Far East. The Floirendo-controlled Anflo Management and Investment Corp. holds a 39.37-percent stake while the remaining shares are held by various members of the Floirendo family.

As a result of its planned expansion, Davco expects to generate employment for 170 new workers that would result in total salaries of P21.5 million.

Davco’s source of financing for its expansion would come from bank loans amounting to P151.692 million and only 12 percent or P20.714 million will be internally generated from its existing operation.

Del Monte’s local subsidiary is expected to start its expanded commercial operation by April 2003.

It is committed to export 8,911 metric tons (MT) or 94 percent of its additional capacity of 9,470 MT.

Its main export market will continue to be Japan, Hong Kong, Korea and New Zealand.