MANILA, Philippines -Universal Robina Corp., maker of Chiz Curls and Chippy, is teaming up with Japanese snack food giant Calbee Inc.
Gokongwei-led URC told the stock exchange it has signed a joint venture agreement with Calbee last March 28.
Under the agreement, URC and Calbee will put up a 50-50 joint venture company to manufacture high quality snacks in the Philippines. Operations are expected to start in 2015.
The deal is expected to grow local market share for Calbee, which is best known for Jagabee Potato Sticks and Calbee Potato Chips.
"The joint venture company aims to have annual net sales of P2 billion by 2020. It is expected to contribute to URC's medium to long term business performance," URC said.
URC said the joint venture's initial paid-in capital is around P654 million.
However, the joint venture agreement is still subject to board approvals of both URC and Calbee.
Last January, Calbee said it decided to establish a joint venture company with URC as it seeks to grow sales of Calbee products and expand market share in the Philippines.