Member access

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.
03/01 CEBU AIR : Low-cost carriers seek additional seats to Singapore
02/23 Cebu Pacific sells 6 planes
02/20 ROBINSONS LAND : raises P12B from bond sale
02/19 JG SUMMIT : Luzon grid to get 297MW boost -- DOE
02/18 ROBINSONS LAND : Homes allots P2 B for 3 new projects
02/15 ROBINSONS LAND : profit jumps 36% to P1.4 B
02/10 CEBU AIR : CebuPac, Tiger fly 16.9-M passengers in 2014
02/09 ROBINSONS LAND : to put up 7 new malls
02/09 ROBINSONS LAND : to issue up to P12-B bonds
02/07 CEBU AIR : Pacific to launch direct Kalibo-HongKong, -Tokyo flights
Advertisement
Income Statement Evolution
More Financials
Dynamic quotes  
ON
| OFF