MANILA, Philippines — SL Agritech Corp., the largest producer of hybrid rice and seeds in the country, is building a rice mill in Tarlac which will double its production capacity.
Company chairman and chief executive officer Henry Lim said the rice plant, which will rise on a seven-hectare property in San Victoria in Tarlac, would cost about P300-P500 million.
With the planned facility, the company’s production of rice is expected to double to 500,000 bags. Contract growing is also seen to double to 20,000 hectares.
The project will be funded by proceeds from the company’s P2 billion debt offering.
SL Agritech has subsidiaries in Indonesia and Myanmar. Its unit in India is set to be fully operational this year.
Lim said the company plans to raise another P3 billion from the issuance of preferred shares in the third or fourth quarter.
He also pointed out that the company is not in a rush to go public as it focuses its efforts on its expansion programs.
SL Agritech is one of the largest hybrid rice producers in the country. It produces the Dona Maria brand of premium rice in Miponica and Jasponica varieties.
It holds 70 percent of the total market share of hybrid variety in the Philippines.
The company has various partnerships for hybrid rice seed production in India, Vietnam, Bangladesh, Indonesia and Cambodia.