Chemphil Group invests P1.35-B in new film packaging venture

The group of businessman Ramon Garcia, part owner of the Chemphil Group of Companies, is investing P1.35 billion to put up a new film packaging firm.

Garcia, chairman of the board of Modern Packaging Films Inc. (MPFI), said the new company plans to manufacture bi-axially oriented co-extruded polypropylene (BOPP) film and non-oriented co-extruded polypropylene (CPP) film.

MFPI will also engage in the metallizing of BOPP, CPP and other related plastic films at the Plastic Processing Center Special Economic Zone (PPC-SEZ) in Alion, Mariveles, Bataan.

The BOPP and CPP films will be used as packaging materials for various types of food products for longer shelf life, as well as for tobacco products.

Metallized films, on the other hand, are used as barrier materials to protect food and other products from contact with oxygen, gases, moisture and light.

The packaging materials to be produced by MFPI are intended for food items such as bakery products, confectionery, dried food, dairy products, drinks, ice cream and lids.

They are also suitable packaging materials for stationary, soap, single use medical products, tobacco bundle wrap and barrier packaging for industrial products.

MPFI will lease an 8,440 square meter factory building from Diversified Plastic Film Systems Inc., which is also partially owned by Garcia.

Diversified Plastic Film Systems Inc. is the owner/developer of the Plastic Processing Center SEZ.

The timetable for the commercial operation of MPFI for its CPP and metallized film production is early 2004, while its BOPP film production is scheduled for January 2005.

MPFI is expected to compete with Universal Robina Corp. (URC), the food and packaging arm of JG Summit Holdings.

URC is the biggest producer of packaging film for various food products.

URC spent P860 million two years ago to double the capacity of its packaging plant located in Batangas City.