Philippine processor Alliance Select Foods International Inc. on Thursday said it has allotted $21 million in capital expenditures this year for its Philippine and Indonesian operations.
During the company’s stockholders’ meeting, Alliance Select president Jonathan Y. Dee said the company will spend $4 million for its Indonesian fleet and $17 million for its Philippine operations.
Alliance Select president Jonathan Y. Dee
Dee said Indonesian subsidiary PT Van De Zee is building two new catchers that will be ready to sail in the fourth quarter of this year, adding that two more will be built for completion next year.
“This buildup in fishing capacity will support the tuna requirements of PT International Alliance Food Indonesia, our cannery in Bitung, Indonesia and will increase the capacity utilization,†Dee said. The company has a license to fish in Indonesia over the next five years, generating an estimated $164 million.
Last year, the company acquired a fleet of fishing vessels through Wild Catch Fisheries Inc., a 40 percent joint venture with a Philippine shipping group.
“This fleet will engage in fishing in Philippine and international waters and will have the capacity to supply 10,000 metric tons per year of fish to our General Santos cannery,†Dee said.
“It is expected that as of our fishing fleet go into full operations, our historical profitability will not only be met, but will indeed be exceeded,†Dee said, adding that growth will remain “very robust†this year because of the “better supply†of fish.
Last year, Alliance Select posted a net profit of $74, 000, a turnaround from a net loss of $952,000 in 2011. This was accompanied by a 60 percent growth in sales to a record $82.3 million from $51.3 million over the same period on higher tuna and salmon sales.
The Philippine and Indonesian tuna operations accounted for 74 percent of the company’s revenues, while salmon made up the remaining 26 percent.
