Aboitiz Equity Ventures Inc. may to expand its animal feeds business in Vietnam.
AEV executive vice president and chief operating officer Sabin Aboitiz said the company through unit Pilmico International planned to increase the capacity of the firm’s animal feeds business in Vietnam.
The company is looking for more acquisitions after recently acquiring a 70-percent stake in Europe Nutrition Joint Stock Co. (Eurofeed) for $5.3 million.
“We would double the capacity of that animal feed business next year for Southern Vietnam and Cambodia,” Aboitiz said.
Pilmico last year purchased 100 percent of Pilmico Viet Nam Trading Company Limited (Pilmico Vietnam Trading) for 800 million Viatnamese dong.
Pilmico Vietnam Trading is a limited liability company operating in Vietnam. The company is engaged in the wholesale of food products, beverages, agricultural and forestry raw materials.
Pilmico Vietnam Trading will be the vehicle used for the importation and distribution of Pilmico products in the Vietnam market.
Aboitiz said the group would also expand its feeds business in the Philippines.
The company earlier said it planned to spend P4 billion to expand the production capacity of Pilmico from 2017 to 2020.
The group broke ground on several projects, including the expansion of meat processing and feed mill plants and a grains storage facility in Tarlac province.
Aboitiz said the company recently incorporated a trading office in Indonesia as part of the thrust to expand within Southeast Asia.
The profit contribution of AEV’s food subsidiaries decreased 19 percent to P717 in the first six months of 2017 million from P885 million as the feeds and flour businesses in the Philippines reported a drop in net income contributions largely driven by higher raw material and operating costs.
The feeds business in Vietnam and farms, meanwhile, showed remarkable improvements in net income.
Feeds Vietnam’s income more than doubled from P24 million to P57 million driven by the 6 percent volume growth a result of its expansion in new markets.