IGLOO Cold Storage Complex Corporation, a subsidiary of the homegrown RD Group of Companies, was recently granted fiscal and other incentives for seven years for putting up a P350 million cold storage facility in General Santos City, an official confirmed Friday.
Joaquin Tiongco, investment division chief of the City Economic Management and Cooperative Development Office, said the local investments board unanimously approved the application of Igloo Cold Storage for exemptions.
He said the firm's facility, which is so far the biggest investment in the city this year, is still under construction and expected to be operational within the year.
Under the General Santos City Investment Code, large enterprises with capitalization between P100 million to P500 million shall be fully exempted from payment of all local regulatory fees and business taxes for seven years.
Moreover, it grants full exemptions from payment of real property tax.
Igloo Cold Storage is expected to generate 35 more workers to the business empire founded by the elusive fishing magnate Rodrigo Rivera, Sr., a former local banker.
Tiongco said that Igloo Cold Storage would service 60 percent of the storage needs of the tuna and marine processing arms of RD Group while the other 40 percent is allocated for outside clients.
Ritche Rivera, RD Group's executive vice president and chief operating officer, revealed middle of last year the company's massive cold storage expansion project.
"This will be the biggest cold storage facility outside Luzon that is capable of handling 10,000 tons," Rivera said.
Presently, San Miguel Corporation operates in Luzon island the largest cold storage facility in the country with a capacity of at least 15,000 tons, he added.
Rivera said the project will mainly support the company's tuna manufacturing unit, since this rakes in more money for the firm.
According to him, processed canned tuna products earn threefold more than the fresh form, explaining that for a 40,000 to 50,000 kilos of fresh tuna, it would only generate the company roughly P1.2 billion.
But for processed tuna using the same volume, the earnings would reach as much as P3.6 billion, he noted.
Rivera pointed out their tuna manufacturing line contributes 70 percent of the total revenues for the firm's fishing endeavor.
"Actually, we can afford to close down our fish catching activities because we can import or buy from other local producers’ tuna raw materials. But we have not been doing this [stop fish catch activities] because some 7,000 to 8,000 families will be affected," he said.
Aside from fishing, RD Group has interests in banking, pawnshop, real estate, and aquaculture, among others. (BSS)
