MANILA, Philippines - LT Group Inc., the investment holding firm of tycoon Lucio Tan, has stopped the operations of a production plant in Manila to cut on expenses.
In a disclosure, Tanduay Distillers Inc. said its Manila production facility was decommissioned to reduce costs.
“Tanduay believes that its current and anticipated future production requirements can be met through its other remaining facilities, which utilize more modern production technologies and processes,†it added.
To date, the company has production facilities in Cabuyao, in Laguna, Cagayan de Oro and Misamis Oriental.
“Tanduay expects the Manila facility to serve as a backup plant and may temporarily reopen the plant as needed,†the company said.
In the meantime, Tanduay said it plans to renovate the facility to serve as a museum showcasing the production methods of its products and distilled spirits.
LT Group has lined up an expansion program for the rum producer.
“Tanduay’s principal strategy is to gain and increase its market share by introducing new products to cater to the current and emerging preferences of the markets and to strengthen its distribution capabilities,†LT Group earlier said.
Last year, Tanduay’s revenues and income before taxes hit P12.9 billion and P1.5 billion, respectively, from P12.4 billion and P1.6 billion in 2011.
Tanduay, the second-largest producer of rum in the world that has a total of 140 international awards to its credit, plans to expand its export business through new rums that will be sold in the United States starting this year.