San Miguel Yamamura Asia to expand bottle output

The Philippine Board of Investments has approved an incentive package, including an income tax holiday, to the PHP 5.2 billion expansion project of San Miguel Yamamura Asia Corp. (SMY).
SMY, a joint …

The Philippine Board of Investments has approved an incentive package, including an income tax holiday, to the PHP 5.2 billion expansion project of San Miguel Yamamura Asia Corp. (SMY). SMY, a joint venture between San Miguel Corp. (60%) and Japan“s Nihon Yamamura Glass Co. Ltd., produces packaging for food, beverage and personal care products. It plans a two-phase expansion and upgrade of capacity to further enhance its competitivity and cope with the projected rise in demand for bottles over the next three to five years. The capacity expansion is expected to be completed by August 2007. The first phase of the expansion, valued at PHP 3.7 billion, covers the manufacture of glass containers, while the second phase concerns the expansion of the glass container project. SMY has produced 133 bottle designs since 1992, 60% of which are still on the active production list, and it continues to introduce an average of eight new products a year. Trade and Industry Secretary Juan Santos said the SMY project fits well with the DTI“s aim of supporting the development of the food export industry. “The food sector is one of the top five nontraditional Philippine exports and we intend to develop it further by giving incentives to firms that support the industry.” SMY has become the main supplier of glass bottles for the Philippine food industry as well as the international bottle requirements of the San Miguel group. It is the sole source of all bottles for the trendy sports drinks. SMY also exports glass bottles for food and liquor to Australia, the United States and Japan. SMY“s plant is located in Imus, Cavite. It plans to hire an extra 157 workers for the expansion project.