Macondray to build P350-M plastics plant

Macondray Plastics Inc. (MPI) has earmarked P350 million for the construction of a new plastics plant in Davao.

MPI chairman Martin Lorenzo said the plant, which will be the company’s third, will be operational in February 2006.

The company’s main facility is located in Panacan, Davao while the second facility is located in Panabo, Davao Del Norte.

Lorenzo said the new plant will boost production capacity by 60 to 70 percent of the existing capacity.

MPI produces polyethylene plastic blown film products and polypropylene twine to supply the requirements of the banana-growing and export industry in Mindanao.

The company, formerly Agro Plastics, Inc., was incorporated on Nov. 19, 1990 by Pioneer Ventures, Inc. to supply the requirements of the banana companies under the Lapanday Group. In its first year of operation, the company operated at different levels of capacity, producing an average of 130 metric tons of blown film plastic products, mostly seed bags and export packaging bags.

On March 15, 1995, Agro Plastics was acquired by Macondray & Co., Inc. and was renamed Macondray Plastics, Inc.

MPI reported a slight drop in its earnings in the nine months ending September this year to P14.2 million from P 15 million the previous level.

Revenues, however, grew 18.6 percent to P244.24 million from only P205.85 million, largely due to an increase in selling price implemented by the company for all its products during the third quarter of the year.

Average selling price for the third quarter of 2005 was pegged at P17.2 per kilogram, 19.9 percent higher than the third quarter 2004 average selling price of 97.8 per kilogram.

A significant increase in revenues was also generated from sales to the commercial-industrial sector which contributed P30.1 million compared with only P 16 million last year.