CONGLOMERATE JG Summit Holdings, Inc. said it was spending P48.2 billion ($960 million) this year to fund the expansion of its businesses, including petrochemicals.
Of the total capital expenditure, President Lance Gokongwei said the company was earmarking from P18 to P20-billion for its airlines business, Cebu Air, Inc. while P7 billion would be allotted for its food business, Universal Robina Corp.; P15-billion for its property unit Robinsons Land, with the balance for petrochemicals, and “a few hundred million” for its bank unit.
The conglomerate firm is allotting $700 million for the petrochemicals business JG Summit Petrochemicals Group.
“We’re preparing invitations to bid … [and]we’re seeking clarifications now from vendors. We’re seeking basically to award the petro packages,” Gokongwei said in an interview with reporters after the company’s annual stockholders’ meeting Tuesday night.
“There are five projects here — one is expansion of our naphtha cracker, the second is expansion for polypropylene plant. The third is a brand new polyethaline factory, fourth is aromatics factory, the fifth is a butadiene plant. So these five packages will be awarded to the [engineering, procurement and construction] EPCs by the end of the year,” he added.
The company said it would source the funds from free cashflows and borrowings.
It expects the business to be fully-operational by 2021.
JG Summit is the conglomerate firm of tycoon John Gokongwei Jr. ANGELICA BALLESTEROS