Purefoods Hormel invests P5.7 B to double plant output

MANILA, Philippines - The Board of Investments (BOI) has approved the application for registration of Purefoods Hormel Company Inc. for its P5.7 billion expansion project in Cavite.

Purefoods Hormel, a joint venture between conglomerate San Miguel Corp. and Dutch firm Hormel Netherlands Inc., is doubling the current capacity of its processing plant in General Trias.

The project, which is expected to start commercial operations in December this year, will increase the current 60,000 metric tons per year capacity of the Purefoods Hormel plant by an additional 61,200 metric tons per year.

Once operational, the company will hire an additional 1,242 workers to boost its operations.

The BOI said Purefoods Hormel would use domestically-produced and imported raw agricultural products. Locally-sourced raw materials include meat, spices, and casings.

Around 98 percent of the plant’s produce will be sold to the domestic market, while the remaining will be for the export market.

According to the BOI, the P5.7 billion project qualified for “commercial processing” which entails the conversion of agricultural and fishery products or wastes to a form ready for further processing or final consumption.

The agency said Purefoods Hormel plans to collaborate with the local farmers within its area of operations for the supply of cassava feeds for its hogs. Hogs, a major raw material in the production of hotdogs, will be raised using feeds made out of cassava.