PSE suspends trading of Wellex shares

The Philippine Stock Exchange (PSE) suspended yesterday trading in shares of Wellex Industries Inc. of plastics king William Gatchalian due to the company’s failure to comply with the bourse’s reportorial requirements.

In a memo to brokers, the PSE said the suspension was due to Wellex’s failure to submit its annual report for 2003 and pay the basic and daily fines.

It was not the first time that trading of Wellex shares has been suspended. Last year, the company was also fined by the PSE for repeated failure to submit financial reports on time.

Formerly listed as Republic Resources and Development Corp., whose primary purpose was to engage in the business of mining and oil exploration, Wellex was transformed into a holding company for manufacturing concerns with the entry of the Gatchalian group in 1997.

In November 1999, Wellex formalized the entry of Plastic City Industrial Corp. into the group. PCIC is the Philippines’ first fully integrated manufacturer of plastic products used in a number of industries.

This year, the company intends to venture into beverage production through unit Philfoods Asia Inc. It will start producing packaged fruit juices and powdered juices which will be marketed and sold in the central and southern islands of Visayas and Mindanao.

Since 1998, Gatchalian has forayed into leisure-oriented businesses, acquiring Waterfront Philippines Inc., which operates the Waterfront Mactan Casino Hotel and Waterfront Cebu City Hotel; Fort Ilocandia Hotel in Ilocos Norte; and Davao Insular Hotel (which had already ceased operations).

Gatchalian also has shares in Forum Pacific Inc., Philippine Estates Corp., Petrochemicals Corp. of Asia-Pacific, Wellex Industrial Corp., Rexlon Industrial Corp., Kennex Corp., Pacific Plastic Corp., MPC Plastic Corp., International Polymer Corp., Recovery Development Corp., Pacific Rehouse Corp., Orient Pacific Corp., Philfoods Asia Inc., Sun-Star Manila Publishing, Forum Exploration Inc., Cophil Drilling, and Wellex Petroleum Corp.