BOI okays P5.2-B expansion of San Miguel Yamamura glass packaging plant

The Board of Investments (BOI) has approved the grant of incentives to the P5.2-billion expansion project of San Miguel Yamamura Asia Corp.’s glass packaging plant in Imus, Cavite.

San Miguel Yamamura (SMY) is a partnership between two Asia-Pacific industry leaders — food and beverage conglomerate San Miguel Corp. of the Philippines, with a 60 percent stake, and Japan’s foremost glass packaging manufacturer Nihon Yamamura Glass Co. Ltd. with the remaining 40 percent interest.

The SMY plant currently produces glass packaging for consumer products such as food, beverage and personal care products.

The company is fast becoming the dominant source of glass bottles for the local food industry, as well as for the international bottle requirements of the San Miguel group. In particular, it is the sole source of all bottling requirements for trendy sports drinks.

SMY is also a supplier of export-oriented glass bottles for food and liquor products in Australia, Japan and the United States.

To enhance the plant’s competitiveness and cope with the projected demand for bottles in the next three to five years, SMY will upgrade and expand its capacity in two phases to be completed by Aug. 2007.

Phase 1, costing about P3.7 billion, will involve the manufacture of glass containers, while Phase 2 will be used to expand the glass container project.

It will hire 157 additional workers for the expansion project.

Since 1992, SMY has produced 133 bottle designs, 60 percent of which are still in the active production list. An average of eight new products continue to be introduced yearly.

Trade and Industry Secretary Juan B. Santos said the SMY project dovetails with the department’s thrust of supporting the development of the food export industry.

"The food sector is one of the top five non-traditional Philippine exports and we intend to develop it further by giving incentives to firms that support the industry," he said.