Newly listed Crown Asia Chemicals Corp has set aside P175 million for capital expenditures this year, which is more than double its P63.4 million spending last year, a senior official said on Monday.
Tita Villanueva, Crown Asia investor relations head, said this year’s capex includes P110 million for setting up a new manufacturing plant and warehouse for various types of pipes, P43 million for the retirement of debt from Security Bank used for its initial expansion and P25 million for the acquisition of high-tech machines.
The new plant, which will be operational by July, will expand the company’s production complex in Guiguinto, Batangas to 3.2 hectares from 2.5 hectares currently, Villanueva said.
Crown Asia is a plastics compound and pipes producer. It manufactures and sells plastic chemicals and compounds as well as synthetic resins for making construction materials such as tubes and pipes.
The company is a direct supplier of pipes of major property developers such as Ayala Land, DMCI Holdings, Federal Land, Robinsons Land and various hardware outlets. It also exports chemical compounds to Taiwan and the United States.
In December last year, the company reported that 60 percent of its income came from compounds and 40 percent from pipes. Last year, the company increased its net income by 31 percent to P65.38 million as revenues grew 6 percent to P850.74 million from the previous year.
Villanueva said the company expects to expand its reach to the Visayas and Mindanao markets from its current concentration in Luzon and Metro Manila.