4 groups invest P119.1 billion in 2009

MANILA, Philippines - Four big global conglomerates invested a total of P119.1 billion in the country last year, the Department of Trade and Industry (DTI) reported yesterday.

The DTI has yet to release the 2009 full year investment figures. One of the attached agencies of DTI, the Board of Investments (BOI), missed their flat target for last year as investment commitments for that department contracted. Likewise, the Subic Bay Metropolitan Authority (SBMA) said they had less investment commitments last year when compared to 2008.

In spite of this, Trade Secretary Peter B. Favila said he was satisfied with the investment commitments gathered last year.

“Investor confidence in the Philippines continues to be strong with recent entry of critical investments poured from several global conglomerates such as the, Sumitomo Metal Mining Co., Charoen Pokphand Foods (CP Foods) and Al Kharafi Group,” Favila said.

“The decision of these companies to invest is a clear indication that the Philippines remains to be one of Asia ’s investment destinations of choice,” Favila added.

One of the investments is the Taganito HPAL Nickel Corp. (THNC) which is a joint-venture firm of Nickel Asia Corp. (NAC) and Sumitomo Metal Mining Co. (SMMC) an affiliate of one of Japan’s largest conglomerate, the Sumitomo Group.

This joint venture project is considered the biggest investment in the Philippine mining sector with a capital infusion of P62.7 billion. The project is envisioned to increase the country’s market share to more than five percent of total world nickel production output in three years.

The project involves the production of nickel-cobalt mixed sulfides from low grade ore and limonite by adopting the High Pressure Acid Leach (HPAL) technology. This technology involves higher value added processing and clearly demonstrates the capability of the Philippine mining industry to break new ground by exporting nickel concentrates.

The plant will be located in a 670-hectare Special Economic Zone in Surigao del Norte. The output of the plant will be purchased by Sumitomo for final processing at its refinery in Japan. SMMC is one of the biggest mining companies in the world.

The project is expected to generate an annual export of $318 million. The utilization of the HPAL technology will bring in new economic activities that will generate new jobs to 510 people in the surrounding communities of the economic zone.

Also, Charoen Pokphand Foods or CP Foods, a wholly owned subsidiary of Thailand ’s largest agribusiness group, the Charoen Pokphand Foods Public Company Limited (CPF) will put up an aqua feed mill project in Capas, Tarlac 

The project will cost P 2.4 billion pesos and will have the capacity of 114,000 metric tons per year and will commence operation in 2011. This production capacity will bridge the current gap demand for aqua feeds.

For infrastructure, the Al Kharafi Group, one of the biggest and most respected conglomerates in Kuwait expressed interest to pour $1.2 billion or an estimated P54 billion in total investments for the design, financing, construction and operation of the Diosdado Macapagal International Airport (DMIA) Terminal 2.

The DMIA Terminal 2 is an integral part of the Subic-Clark mega logistics hub and is being developed to be the premier gateway airport of the Philippines by 2011. The Philippines ’ strategic location, including the Subic-Clark area and the continuous improvement in the country’s infrastructure network would enable its transformation into a globally competitive service, logistics and transportation center in the near future.