Listed compounds and pipes maker Crown Asia Chemicals Corp. has been tapped to supply materials for the P15.86-billion Ninoy Aquino International Airport (NAIA) Expressway Phase 2 project.
The NAIA Expressway project, which started construction this month, is under the government’s public-private partnership program (PPP).
The supply deal was a renewal of Crown Asia Chemical’s previous contract to provide
polyvinyl chloride (PVC) pipes for the NAIA Expressway Phase 1 project. The firm said the award cemented its foothold in the infrastructure sector.
“The quality and consistency of our products has made us a reliable partner for government projects,” said Derrick P. Villanueva, general manager of Crown Asia Pipes Division. “The NAIA Expressway undertaking is a clear testament to this.”
Villanueva said Crown Asia Chemical makes sure its products comply with, or even exceed, industry standards, which is why, he added, more architects, engineers, designers, and reputable real estate developers choose it.
The NAIA Expressway Phase 2 project involves the design and construction of a four-lane, 7.75-kilometer elevated expressway from the terminal of Phase I at Sales Ave. to Andrews Ave., Domestic Road, MIA Road, before ending at Diosdado Macapagal Boulevard, which connects to Manila and the Entertainment City.
The project also includes the construction of a 2.2-km, six- to eight-lane road going to the Entertainment City, as well as the operation and maintenance of the expressway in a 30-year period starting from the construction date.
It was the third PPP contract awarded under the Aquino administration, handed over to Optimal Infrastructure Development Corp., a unit of San Miguel Corp., via a PPP auction in 2013.
Once completed, the NAIA Expressway will reduce travel time from Skyway to NAIA to 8.2 minutes from the current 24.3 minutes.
Aside from the NAIA Expressway, Crown Asia Chemicals also supplied for another government project, the recently completed Iloilo Convention Center, where meetings of the Asia-Pacific Economic Cooperation (APEC) were held.
The company also supplies pipes and fittings to projects of the National Housing Authority (NHA) in Manila, San Juan, Caloocan, and Bulacan.
Crown Asia Chemical was the first company to list at the Philippine Stock Exchange this year. It manufactures pipes, fittings and plastic compounds products, and supplies mostly for the private sector, especially for condominiums, subdivisions, malls, hospitals, and resorts.
In the first half of 2015, the firm’s profits soared by 142 percent to P41.28 million from P17.04 million, as its consolidated revenue likewise improved by 26.2 percent to P499.27 million from P395.62 million.
The company has set aside P175 million in capital expenditure (capex) for 2015, which is higher than P63.4 million spending last year. The capex is mostly sourced from the funds raised from its P222 million initial public offering (IPO), having P203.98-million net proceeds after listing related expenses and taxes.
Crown Asia Chemicals expects to sustain its growth momentum in the coming years.