Listed tuna canner Alliance Alliance Select Foods International Inc. is expecting more than P1-billion sales from its salmon subsidiaries with one of its subsidiaries having undergone capacity extension.
A disclosure to the Philippine Stock Exchange showed on Tuesday that Akaroa Salmon NZ Ltd., a subsidiary of Alliance, has undergone capacity extension.
“Alliance and Akaroa expect a significant boost to their growth and profit margins due to this expansion. The company expects sales from its salmon subsidiaries, including Akaroa, to exceed P1 billion in the current year,” Alliance said in the disclosure.
According to the firm, this expansion is part of the company’s strategy, along with its Kiwi partner, to offer Akaroa’s prized salmon to a more diverse set of clients.
The extra output from this expanded capacity is expected to enable Akaroa to further make its mark locally in New Zealand and internationally.
Akaroa’s salmon is considered the benchmark in the Kiwi salmon industry, and the company is confident that there is a strong demand for its unique brand of Chinook salmon.
Moreover, Akaroa is set to invest in new infrastructure with the intention of expanding capacity as well at its fish farms in Akaroa harbor, New Zealand.
“Once the development program is completed, the company hopes to more than double 2012 calendar year production. The company also intends to invest in vessels and land-based infrastructure to support the increasing production,” Alliance said regarding Akaroa’s ongoing expansion program.
Earlier this year, Alliance, CHL Fishing Industry Inc. and CHL Construction and Development Enterprises Inc. created a joint venture fishing company, which will have an initial authorized capital stock of P16 million.