Tecnogas is a global brand name that makes and sells gas stoves and electric fans.
In an interview, Ang said he signed last Wednesday an agreement with businessman Julio Sparaz, owner of Tecnogas Philippines Inc., to acquire the exclusive distributorship license for Tecnogas products. He said it took about six months to conclude negotiations with the Sparaz family.
He stressed that he was not taking over Tecnogas Philippines and that he was just acquiring the foreign brand. "What I’m buying is the brand, not the company," he said.
Tecnogas Phils., whose plant is located in Sucat, Parañaque, ceased operations in October last year due to liquidity problems blamed on mismanagement.
A severe contraction in consumer spending, an offshoot of the Asian economic crisis, adversely affected Tecnogas Phils.’ liquidity position, hobbling its ability to service debt obligations to creditors and pay its over 100 employees.
Ang said the distributorship right was acquired at a very reasonable price, adding that he will initially shell out P3.5 million to enable Tecnogas Phils. to pay back its employees. "I made it a condition that they pay first their employees," he said.
He said the remainder of the agreed purchase price will be paid on installment basis based on the sales generated per month.
Ang said he will form a new company to serve as the corporate vehicle for the venture. "It will be a family-owned corporation. My lawyers are already preparing the necessary papers," he said.
He is leaving for Italy next week for the canonization of Msgr. Josemaria Escriva and will be making a sidetrip to meet with the Italy-based owners of Tecnogas.
"I’m going to Rome next week to meet the Italian owners of Tecnogas to explore possible expansion opportunities in the Philippines," he said.
According to Ang, he is also keen on manufacturing Tecnogas products in the Philippines for better cost-efficiency. "This, however, will take some time," he said.
Upon his return, Ang said his first order of business is to revive the Tecnogas service department in Sucat, Parañaque.
Ang expressed confidence that Tecnogas would regain market position in a year or two as he boasted of a reliable consumer patronage due to the credibility it developed over the years.
Domestic appliance manufacturers had earlier said a recovery in their sector could start late this year or next year as the economy has already shown some improvement. Sales of household appliances are highly sensitive to prevailing economic conditions.
Aside from being Mrs. Arroyo’s personal publicist and holding top positions in several private corporations, Ang also sits as chairman of the board of directors of the government-sequestered RPN-9 television network.
Ang also has interests in print media. He acquired the Manila Times last year from Strategic Publishing Corp. after its previous owner, Mark Jimenez, won a congressional seat in Manila’s sixth district in the May 2001 elections.