Aboitiz eyes projects

THE Aboitiz group of companies sees positive growth this year as it continues to expand its food and real estate businesses.

“Last year was very good, particularly in the real estate business, because sales were strong,” said Andoni Aboitiz, president and chief operating officer of Aboitizland.

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Aboitiz reported that the company achieved 40 percent sales growth last year.

At least half of the company’s sales are accounted for by overseas Filipino workers directly or indirectly, he said.

Aboitizland is the real estate arm of the Aboitiz group.

“We are confident that for this year, we’ll be able to launch more projects, considering the positive sentiment of the economy,” he said.

Interest rates of nine to 10 percent, which are “the lowest in my living memory,” he said, would continue to drive housing sales.

Aboitiz told Sun.Star Cebu yesterday that the company will launch two house and lot projects this year.

“The first project is a 15-hectare development in Cordova that will be launched in April,” Aboitiz said.

The project will target the middle-income market.

The second project, he said, will involve high-end residential units in Pristina North.

“This pocket development will house 50 high-end residential units (worth) about P7 to 8 million,” he said.

Aside from the residential units, Aboitizland plans to put up a commercial building.

With new players emerging in the real estate business, Aboitiz said the company will continue to give better and interesting packages to its clients.

Aboitizland targets to generate a billion pesos in sales this year.

Meanwhile, Pilmico, the food business unit of the Aboitiz group, will likewise expand, as it will double the capacity of its feed mill in Iligan City by July or August.

“The feed mill in Iligan allowed us to cater to the market in the Visayas and Mindanao. By adding more capacity, we’d be able to cater to the market and save on freight costs more,” said Stephen Paradies, senior vice president and chief financial officer of Aboitiz Equity Ventures (AEV).

AEV is the publicly listed holding and investment management company of the Aboitiz group.

From the usual feed production of 10,000 tons a month, the feed mill in Iligan, Paradies said, can now produce 20,000 tons a month, similar to its other feed mill in Tarlac Province in Luzon.

Paradies hopes that Pilmico’s recent introduction of its new feed product for the gamefowl industry will add to the growth in sales that Pilmico is enjoying.

“Currently, 50 percent of the sales growth can be attributed to the feed business, and we hope that the new feed product will further drive (sales in) the market more,” he said.

As for the flour business, Paradies is targeting “little growth” of about five percent this year.

“This is because of the presence of flour imports from other countries, which are of cheaper prices than those in the domestic market,” he said.

Aside from doubling the capacity of the feed mill in Iligan, the food business unit of Aboitiz also plans to venture into chicken raising and the production of noodles.

“But we are still doing a market study on these,” he said.