BOI approves Php46M plastic pellets plant
PORTAL STEELS, INC.’s application for registration as a new export producer of plastic pellets was given the go-signal by the Board of Investments (BOI) under the Export Activities of the Investment Priorities Plan (IPP). The said category covers production/manufacture of non-traditional export products with an export requirement of at least 50% (if Filipino-owned) and at least 70% (if foreign-owned).
The Php46.3 million plant is located in Hong Chang Compound, Carmona, Cavite with a registered capacity of 2,400 metric tons (MT) per year. At least half of the production is expected to be exported to Southeast Asia and other Asian countries in compliance with its registration as a Filipino-owned company. These pellets are intended for the manufacture of food and beverages packaging products, plastic packaging bags, plastic gear box motors, among others.
Commercial operation is scheduled to begin on December 2017 with an initial employment of 26 personnel and upwards to 44 by the fifth year of operations.
“This bodes well for more firms to export their products while also catering to the demands of the domestic market. Recent figures show our export figures in on upward trend with double digit growth in the first half of the year,” Trade Undersecretary and BOI Managing Head Ceferino Rodolfo said. Exports output reached US$31 billion from January to June 2017, up 13.6 percent from US$27.3 billion last year during the same period, according to the Philippine Statistics Authority (PSA).
Initially, the firm has been registered with the Security and Exchange Commission (SEC) since 2013 and it has an existing operation with scrap metal recycling activity located in Valenzuela, Metro Manila. Portal Steels continue to acquire scrap metals from structure of old buildings, used vehicle or salvage vessels. These gathered metals are then sorted and checked for usable and functioning materials before exporting.
On August 2016, its SEC registration has since been amended from engaging in the business of trading scrap metal materials, special metal and all of other kind of metals at wholesale basis only to also engaging in the business of buying, manufacturing of steel for infrastructure, manufacturing of plastic products such as but not limited to pelletized plastic or any other plastic products. The plastic pellets project qualified for BOI registration since there will be infusion of new investments and it is located in Cavite, which is not contiguous to its existing operation.
Plastic pellets are considered pre-production plastic resin pellets. They are essential raw plastics and are transported to manufacturing sites where they are re-melted and molded into final products such plastic bag, bottles or toys. The plastic pellet market covers the automotive, construction, electronics, machinery, packaging and other sectors. (END)