Food canning firm Mega Global earmarks P500M for expansion, acquisitions
Food canning firm Mega Global Corp. has set aside half a billion pesos for its business expansion and acquisition initiatives as the company banks on the country’s economic recovery post-COVID-19 crisis.
“We are allocating at least 500 million for expansion for the whole this year and next year,” Mega Global executive vice president Michelle Tiu Lim-Chan said in a virtual press conference on Thursday.
For his part, Mega Global chief growth and development officer Marvin Tiu Lim said part of the capital expenditure plan is the setting up of a manufacturing facility in Luzon.
“This is to cater to our target market here and give us access for raw materials on this island,” he said.
Mega Global, the maker of household brands Mega Sardines and Mega Tuna, has two manufacturing plants located in barangays Ayala and Talisayan in Zamboanga City.
The facilities have a total production capacity of 300 metric tons per day.
Tiu Lim-Chan said the company is targeting additional 20% of canning capacity.
Apart from setting up a new plant, Mega Global is also eyeing to “expand in other categories” by planned acquisitions of fast-moving consumers goods (FMCG) brands.
“We are very much open to accept, acquire, partner [with brands] which fit our target market such as sari sari stores, supermarkets, public markets,” Tiu Lim said.
“This is preferably food but not necessarily limited to food,” he added.
Mega Global president and CEO William Tiu Lim said that it is the best time for the company to expand and invest amidst the pandemic.
“The best time to invest is when everything is down... because when the economy picks up you are there,” he said.
As most parts of the country were placed under strict lockdown measures mid-March, Mega Global saw a decline in its production capacity due to constraints in getting manpower work in factories amid travel restrictions and banning of public transportation.
Mega Global chief technical and innovation officer Malcolm Tiu Lim said that the company’s production capacity was reduced to 30% to 40% during the months of lockdown and is recovering to around 80% as quarantine measures were eased.—AOL/LDF, GMA News