San Miguel expands flour milling operations

ABS-CBN News

Posted at Jul 22 2014 10:26 AM | Updated as of Jul 22 2014 06:26 PM

MANILA, Philippines - A subsidiary of San Miguel Pure Foods Company is set to break ground for the expansion of its existing flour milling facility in Batangas in September.

San Miguel Mills Inc. (SMMI) is embarking on a 1,800-metric ton-per-day capacity expansion program, which will also involve the
construction of two new milling facilities in other parts of the country.

SMC president and CEO Ramon S. Ang said several European firms have expressed their intent to partner with SMMI in building the facilities.

"Our flour business has been showing consistent growth these past few years. Now we are approaching a capacity level that will trigger a planned expansion program,"

Ang said the expansion project will allow the company to meet the growing demands of the domestic and regional market.

"At the same time, this will also do a lot in helping stabilize or drive down local flour prices as well as prices of commodities using flour," he said.

Once operational, the new facilities will be integrated with SMMI's existing mill and benefit from its recently opened Golden Bay Grain Terminal in Batangas. This will result in lower ocean freight cost of wheat and provide more flexibility in terms of the variety of wheat types to be used.

Ang said the expansion will put SMMI in a better position to boost its export business, as the country prepares for the Asean Economic Community in 2015.

“In terms of technology, the flour mills we are building will be more advanced than any in the country today. They will be geared towards serving the needs of the future. They will be able to produce many types and grades of flour, including some not currently available locally, to cater to the needs of an increasingly demanding and sophisticated market," he said.