Phoenix Petroleum diversifies into asphalt business

Phoenix Petroleum Philippines Inc. is expanding its portfolio of petroleum products and has entered a joint venture deal to market and distribute bitumen or asphalt in the Philippines.

In a regulatory filing submitted by PPI assistant vice president and corporate secretary Socorro Cabreros on Tuesday, the company said its board of directors approved a joint venture agreement with Thailand-based TIPCO Asphalt Public Co. Ltd. and PhilAsphalt Development Corp. to operate, market, and distribute bitumen and bitumen-related products in the Philippines.

PPI said the joint venture will have an authorized capital stock of P275,000,000.00, with equity structure of 40 percent PPI, 40 percent TIPCO, and 20 percent PhilAsphalt.

“Phoenix’s strategic focus will be on creating growth and opportunities in highly attractive industries and markets that are complementary to its core fuel business and are underpinned by strong macroeconomic fundamentals. In this instance, bitumen is one of the by-products of crude oil refining,” the company said.

“In terms of business and operations, the company is able to expand its product portfolio to include bitumen and bitumen-related products,” it said.

After the joint venture has been incorporated, PPI said it will lease from Calaca Industrial and Seaport—formerly Phoenix Petroterminals & Industrial Park—a parcel of land with access to the jetty and wharf facilities where it intends to build and establish a terminal. —Ted Cordero/VDS, GMA News