MANILA, Philippines - The Lorenzo-led Macondray Plastics Inc. is spinning off its plastics manufacturing operations into a new wholly owned unit as it seeks other investment opportunities.
In a disclosure to the Philippine Stock Exchange, Macondray said its board approved the establishment of Macondray Plastics Products Inc. (MPPPI) which shall engage in the manufacture, importation and sale of plastic products.
“Among others, the establishment of the new subsidiary to house its current operations shall prepare Macondray Plastics to evaluate and act quickly on other investment opportunities as they arise,” Macondray said.
Organized in 1990, Macondray Plastics produces varied polyolefin plastic blown film products, polyethylene foam net products, and polypropylene twine for the plastic packaging requirements of the agricultural sector in the Philippines.
Macondray Plastics also serves the requirements of customers for commercial/industrial applications. These are requirements from manufacturers and producers outside the banana industry and cover the range of varied food packaging products, such as fresh tuna export bags, packaging for desiccated coconut, packaging for export banana chips and fresh poultry products.
Macondray Plastics was formerly known as Agro Plastics Inc. and changed its name to Macondray Plastics, Inc. in 1995. Based in Davao City, the company is subsidiary of Macondray & Co., Inc.
As of end-December last year, the company’s total production was approximately 87 percent of mono- and multi-layer blown film products, seven percent of polypropylene twine and six percent of polyethylene foam products.
Macondray Plastic’s revenue from the sale of packaging of export bananas accounted for 30 percent of total sales in 2008.
In the first half this year, Macondray Plastics registered a 17 percent jump in sales to 2,280 metric tons from only 1,947 MT the same period a year ago.