ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon PrintIcon Twitter
Business

Philippines' San Miguel eyes $33.6bn in new projects

Food and beverage giant's expanding portfolio could include $15bn steel mill

MANILA -- San Miguel, the Philippines' largest listed company by revenue, on Monday said it is considering $33.6 billion worth of new projects as it continues its diversification push.

The company is reviewing the viability of a $15 billion fully integrated steel mill, a new $15 billion oil refinery capable of producing 250,000 barrels per day, and a $3.6 billion power plant that can generate 1,200 megawatts of electricity using "ocean tide technology," Chief Financial Officer Ferdinand Constantino told the stock exchange, confirming a local report.

The steel mill could become a new segment in San Miguel's diversified portfolio, which includes traditional assets in the food, beverage and packaging businesses, as well as new businesses in oil refining and sales, power generation, road infrastructure, airports, railway, banking and mining.

San Miguel's stock exchange filing did not provide details for the steel mill plan, but the new project is five times more expensive than the $3 billion investment company President Ramon Ang announced in 2014.

If the plan is pursued, San Miguel would become the first one-stop shop for steel production in the Philippines, where the metal has largely been made by reprocessing scrap. About 70% of the finished steel products used in the Philippines are imported, mainly from China.

Demand for steel is expected to spike in the domestic market, as the government of President Rodrigo Duterte plans to increase infrastructure spending to 7.4% of gross domestic product by 2022, nearly double the ratio in 2015.

San Miguel, which began diversifying into heavier industries a decade ago, itself is a heavy steel user. The company is undertaking multibillion peso road projects, a $1.5 billion railway, and is pitching a new $14 billion airport for Manila, among other infrastructure projects. Ang also has personal investments in cement production.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this monthThis is your last free article this month

Stay ahead with our exclusives on Asia;
the most dynamic market in the world.

Stay ahead with our exclusives on Asia

Get trusted insights from experts within Asia itself.

Get trusted insights from experts
within Asia itself.

Try 1 month for $0.99

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this month

This is your last free article this month

Stay ahead with our exclusives on Asia; the most
dynamic market in the world
.

Get trusted insights from experts
within Asia itself.

Try 3 months for $9

Offer ends October 31st

Your trial period has expired

You need a subscription to...

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers and subscribe

Your full access to Nikkei Asia has expired

You need a subscription to:

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers
NAR on print phone, device, and tablet media

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more