Log in
Login
Password
Remember
Lost password
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 

4-Traders Homepage  >  Shares  >  PHILIPPINE STOCK EXCHANGE, INC.  >  JG Summit Holdings, Inc.    JGS   PHY444251177

SummaryNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsSector news 

JG Summit Holdings, Inc. : JG Summit : Expect Naptha Cracker to Generate $1 Billion in Annual Sales

06/28/2012 | 06:30am US/Eastern
   By Rhea Sandique-Carlos 
 

MANILA--Philippine conglomerate JG Summit Holdings Inc. (JGS.PH) said Thursday that it expects to generate up to $1 billion in annual sales from its naphtha cracker plant project, which is due for completion in the last quarter of 2013.

"We believe we are on schedule and on budget," JG Summit president and chief operating officer Lance Gokongwei told reporters on the sidelines of the company's annual meeting.

The project, once completed, is expected to supply two-thirds of the Philippines's total demand for polypropylene and polyethylene resins--raw materials in the production of plastics.

Some of the plant's output will be exported to China and Vietnam, Mr. Gokongwei said.

The plant will have an annual capacity of 320,000 metric tons of polypropylene and will add 110,000 tons to JG Summit's 200,000-ton-a-year polyethylene output capacity .

The project is expected to expected to cost between $800 million and $900 million. The conglomerate has invested around $300 million so far, Mr. Gokongwei said.

To sustain the project's financing requirement, the company is planning to refinance $300 million worth of bonds that are due to mature next January, he added.

"We will look for a window sometime in the third or fourth quarter," he said, noting that the timing will be opportune, as the bond carries an interest rate of 8%, while current borrowing costs are much lower.

Write to Rhea Sandique-Carlos at rhea.sandique-carlos@dowjones.com and Cris Larano at cris.larano@dowjones.com

React to this article
Latest news on JG SUMMIT HOLDINGS, INC.
07/19 PAL bent on buying more Dreamliners
07/12 CEBU AIR : Pacific passengers up 5% in May
07/05 CEBU AIR : Pacific determined to be PHL's top air carrier
07/02 UNIVERSAL ROBINA : URC inaugurates Negros biomass plant
07/02 UNIVERSAL ROBINA : URC inaugurates 46-MW power plant in Kabankalan
06/26 CEBU AIR : EDITORIAL - Stay out of the blacklist
06/26 CEBU AIR : CEB transferring turboprop plane operating to Cebgo
06/25 CEBU AIR : boosts 2015 capex to $280M
06/25 BANK OF PHILIPPINE ISLANDS : Banks see booming aircraft-leasing business
06/22 JG SUMMIT HOLDINGS, INC. : ex-dividend day for annual dividend
Advertisement
Income Statement Evolution
More Financials