RFM inks P400-M joint venture

Food and beverage giant RFM Corp. signed in Malacañang yesterday a P400-million joint venture agreement with Taiwan-based conglomerate Uni-President Enterprises Corp. formalizing the latter’s investment into RFM’s instant noodle business. Uni-President is the largest public owned food company in Taiwan that also boasts of a strong track record in international operations. For instant noodles alone, it registered $300 million sales in China and $41 million in Indonesia last year. President Arroyo witnessed the signing ceremony which was attended by RFM officials led by chairman Jose Concepcion Jr. and president and CEO Jose Concepcion III, and Uni-President vice chairman and CEO Kao Chin-Yen, president and COO Lin Chang-Sheng and president Hsieh.

Concepcion III said Uni-President’s investment in the local instant noodle industry strongly manifests the company’s confidence in the Arroyo administration and a long-term commitment to the Philippine economy.

The Taiwanese firm, through its subsidiary Uni-President Chain Stores Corp., had earlier infused P1 billion in the 7-11 chain of stores in the Philippines.

"We believe that Uni-President has the expertise and the right technology to further improve the quality of our instant noodle products and make them the best in the market," Concepcion III said, adding that discussions with Uni-President took several months prior to the signing of the final agreement.

The new partnership, which is 65 percent owned by Uni-President and 35 percent by RFM, is expected to contribute to industry growth and in the upgrading of the quality of local instant noodles to be at par with the world’s best.

The instant noodles manufacturing plant will occupy a two-hectare area at the RFM owned Philtown Technology Park in Sto. Tomas-Tanauan, Batangas.

Uni-President joins the growing list of RFM’s foreign partners who have manifested strong confidence in the Philippine business atmosphere. These include EM Warbug, Pincus & Co., Unilever, Sunkist Growers, RC Cola, PT Aqua Investama, Little Caesars, Dairy Queen, Orange Julius, Nomura Jafco, and Merrill Lynch Direct Investments.