Aboitiz earmarks P200M for feedmill in Iligan

Aboitiz Equity Ventures Inc (AEV), the listed investment holding company of the Aboitiz family, is setting aside P200 million for the establishment of a new feedmill in Iligan City.

AEV chief operating officer Erramon Aboitiz said the new facility will be the group’s second, next to the one in Tarlac which underwent expansion in 2005.

The new plant will have an estimated capacity of 10,000 tons of feed per month, Aboitiz said.

AEV, through wholly-owned unit Pilmico Foods Corp., earlier sold to ABF Overseas Ltd. its stake in yeast producer Pilmico-Mauri Foods Corp. for P100 million.

Pilmico-Mauri was formed in 1995 as a joint venture between Pilmico and Burns Philp Co. of Australia to manufacture yeast and other bakery ingredients.

In 2004, Burns Philp sold its yeast division, including its stake in Pilmico-Mauri, to the parent company of ABF Overseas, UK-based multinational Associated British Foods Plc.

AEV said the divestment of its yeast business is in line with Pilmico’s continuing efforts to further concentrate on growing its flour milling business and the feeds and swine businesses of its subsidiary, Fil-Am Foods Inc.

AEV reported a 6.3 percent drop in its net profit in the nine months ending September 2006 to P2.4 billion from the restated net income in the same period in 2005.

The holding firm also has interests in banking (Union Bank of the Philippines and International Exchange Bank), power, transport and food.