The Philippine Government has given the go ahead for snack food giant Universal Robina's P165.5 million (€3.3million) project to expand its production of potato chips for local and export sales.
URC, the food manufacturing arm of taipan John Gokongwei, will be eligible for an income tax holiday of up to four years as a new export producer of premium potato snacks.
URC will ship out 50 per cent of its potato chip production overseas, specifically to Malaysia, Hong Kong and Thailand, with the balance earmarked for the domestic market where URC's Jack & Jill brand is the dominant snack food player. The potato chips will come in various hues and tastes and will be packed in canisters.
The newly expanded production line in its Canlubang, Laguna, plant will start operations this month. The project is expected to generate 99 new jobs.
URC is optimistic about the outlook for its involvement in the food industry this year-both in the Philippines and abroad - with sales expected to grow 12 per cent to 15 per cent in the fiscal year ending September 2002.
URC president Lance Gokongwei had previously stated the company's international operations (which started two years ago) would continue to gain ground and would be its main growth engine this year. Its international operation grew by 43 per cent last year as its share of URC's total sales swelled to 13.4 per cent during the period.
URC has already set a foothold in key markets in Southeast Asia-it has a 37-per cent share of Singapore's snack market; 26 per cent in Hong Kong; 27 per cent of the wafer market in Thailand, and 40 per cent of Malaysia's potato chips market.
URC's revenue from its regional operations grew 43 per cent, accounting for 13.4 per cent of overall revenues at the end of September this year.
URC is spending P3 billion this year to build confectionery plants in Shanghai and Jakarta, expand its flexible packaging plant in Batangas, which produces raw material for flexible packaging, and build a new flour factory in Pasig.
URC currently has factories in China, Indonesia, Thailand and Malaysia and is keen on going to Vietnam. Aside from snack foods, the company makes noodle, confectionery and chocolate products.