The Board of Investments (BOI) approved on Friday Portal Steels Inc.’s application for registration as a new producer of exportable plastic pellets and its P46.3-million plant for it under the Export Activities category of the Investment Priorities Plan (IPP).
This category covers the manufacture of non-traditional export products with an export requirement of at least 50 percent if Filipino-owned, and at least 70 percent if foreign-owned.
The plant is in Hong Chang Compound, Carmona town, Cavite province, and has a registered capacity of 2,400 metric tons (MT) a year. At least half of the pellets it would produce are expected to be exported to Southeast Asia and other Asian countries. Operations are set to begin next month.
The pellets will be used for packaging food and beverages and for plastic packaging bags, among others.
“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 [an]upward trend, with double-digit growth in the first half of the year,” Trade Undersecretary and BOI Managing Head Ceferino Rodolfo said.
Portal Steels initially registered with the Securities and Exchange Commission (SEC) in 2013. It is involved in recycling scrap metal in Valenzuela City.
The firm gets scrap metal from old buildings, used vehicles or salvaged vessels. It then sorts and checks them if they’re still usable before exporting.
In August 2016, Portal Steels’ SEC registration was changed from trading scrap metal items, special metal and other kinds on a wholesale basis only to also buying and producing steel for infrastructure, manufacturing plastic products, such as but not limited to pelletized plastic or any other plastic product.
The BOI said the plant qualified for registration because there will be new investments and the facility is in Cavite, which is far from its scrap-metal recycling plant.