The Board of Investments said Thursday it approved the P2.3-billion greenfield polyethylene terephthalate recycling project of Coca-Cola Beverages Phillippines Inc. that will transform used PET bottles into food-grade PET resin containers.
Based on its presentation to the BOI, CCBPI said it signed a joint ventured with Indorama Ventures Packaging Corp. for a PET recycling and manufacturing project.
The joint venture company, PET Value Philippines Corp., gained a pioneer status that allows the project to enjoy six years of income tax holiday or exemption from wharfage dues and export tax, duty, import and fees, and modified duty rate for capital equipment.
A preferred area of investments may be declared pioneer if the activity involves the manufacturing or processing or uses a design, formula, scheme, method, process or system of production or transformation of any element or raw material or finished good which is new and untried.
A project may also be considered pioneer if it engages in agricultural activities/services essential to the achievement of the country’s self-sufficiency program or produces non-conventional fuels or manufactures equipment which utilize non-conventional sources of energy or conforms to other specific criteria as provided for in the annually drawn Investments Priorities Plan.
Trade Undersecretary and BOI managing head Ceferino Rodolfo said the joint venture infused proprietary and state of the art eight-step recycling process that would transform used pet bottle back into food-grade recycle per resin.
PET Value will soon initiate the construction of a new plant at the Gateway Business Park in General Trias, Cavite. It took over the previous production site of Wilkins Distilled Waters in the economic zone.
PET Value is 30-percent Spanish and 70-percent Dutch company. It received favorable endorsement from the Department of Science and Technology which was instrumental for its pioneering status.
CCBPI is a Philippine-based company engaged in the bottling and distribution of Coca-Cola products in the country. CCBPI is part of Coca-Cola’s Bottling Investment Group.