SMC embarks on P6.7-billion recycling plan

Food and beverage giant San Miguel Corp. will undertake a P6.7-billion recycling project that will produce environment-friendly packaging materials for the local food and beverage industries.

In a disclosure to the Philippine Stock Exchange, SMC said the project will utilize state-of-the-art technology approved by the US and European Food and Drug Administrations to process post-consumer plastic bottles and convert these into food-grade packaging materials and containers.

SMC said the main processing plant will be put up in San Fernando, Pampanga with conversion operations in Batangas, Cebu, Davao, Misamis Oriental and Laguna. Commercial operations are scheduled to start in May 2004.

The collection of plastic bottles will also be conducted nationwide primarily through the support of existing plastic bottler collectors as well as the expansion of subsidiary Coca-Cola Bottlers Philippines.

SMC said such system will be the first of its kind in Asia. Aside from plastic recycling facilities, the project will include facilities designed for the fabrication of plastic closures.

Overall, the project will create jobs for local residents in terms of direct employment and opportunities from industries that would provide services for the collection, processing and conversion operations of the project.

The project is consistent with SMC’s thrusts to boost the domestic economy and protect the environment.

Aside from being a timely response to the growing popularity of plastic containers worldwide, the project is also an affirmation of the company’s commitment to corporate social responsibility.

SMC said plastics have taken global markets by storm as the material of choice for beverage bottles. The format offers good design, flexibility, safety and is also lighter and occupies less space than most other alternatives.

"The use of plastic bottles is gaining ground globally as it offers the best of both worlds, the imagery of glass bottles combined with the convenience and safety of aluminum cans," SMC said.

"This is our way of demonstrating our commitment towards responsible solid waste management and the promotion of both environmental awareness and recycling among communities," SMC added.

SMC said used plastic packaging can be recycled into food-grade containers, fiber for clothing and carpets using a variety of recycling procedures.