Gokongwei buys out Marubeni in petrochem unit

JG Summit Holdings Inc., the flagship holding firm of taipan John Gokongwei, has bought out its Japanese partner Marubeni Corp.’s stake in JG Summit Petrochemical Corp. (JGSPC).

In a disclosure to the Philippine Stock Exchange, JG Summit said it acquired Marubeni’s remaining 17.72 percent interest in JGSPC.

“As a result of such acquisition, JGSPC has become a wholly-owned subsidiary of the company,” said JG Summit.

Citing “confidentiality obligations”, JG Summit refused to divulge other relevant details regarding the deal.

Upon its inauguration on April 6, 1998, JGSPC’s plant became the country’s first integrated polypropylene and polyethylene complex.

Its product lines include linear low-density polyethylene (LLDPE) film and injections, high-density polyethylene (PP) yarn, film and projection grades. JGSPC makes these previously imported materials available at local prices.

With a production capacity of 180,000 metric tons of polypropylene and 175,000 metric tons of polyethylene annually, JGSPC aims to supply the majority of manufacturers of plastic-based products in the country. Utilizing the most modern equipment and the latest processing technology, JGSPC offers A-1 grade processed petrochemical materials with durability and adaptability to a wide range of fabrication, coloration and design.

The LLDPE film grade continues to dominate the domestic film market. The blow and injection molding grades of HDPE continue to do well, with significant growth projected in the injection grade.

Due to JGSPC’s aggressive marketing to the key end-users, the PP yarn and film grades gained wide acceptance among local end-users.

Aside from petrochemicals, JG Summit has six other core businesses: branded consumer, agro-industrial and commodity food products under Universal Robina Corp., real estate and hotels under Robinsons Land Corp., telecommunications and Internet (Digital Telecommunications Phils.), textiles and garments (Litton Mills), air transportation (Cebu Pacific Air) and financial services in Robinsons Savings Bank and JG Summit Capital Services Corp.