Tanduay plans P600-million capex for expansion

NEGROS OCCIDENTAL, Philippines — Tanduay Distillers Inc. plans to spend P600 million this year to expand its distribution centers and biofuel venture of its unit Asian Alcohol Corp.

Tanduay chief financial officer Nestor Mendones told reporters during a visit to the Asian Alcohol facility yesterday the firm is setting aside P500 million worth of capital expenditures this year, about the same as last year’s.

He said the amount would be spent mostly to improve distribution of products.

“Especially in Luzon, we will establish more locations, promotions and advertising. There is a need to be present in more areas,” he said.

In addition, he said the company would be spending about P100 million for Asian Alcohol’s biofuel production.

“This is a separate budget. We’ll need around P100 million just for the bioethanol plant,” he said.

Late last year, Tanduay president and chief executive officer Lucio Tan Jr. announced the revival of Asian Alcohol.

In particular, Asian Alcohol would start biofuel production this year.

Asian Alcohol would follow the model of Absolut Distillers Inc. in

Batangas, which has made more than P880 million from its bioethanol operations since 2015.

Located in Negros Occidental, Asian Alcohol is the country’s second biggest distillery.

The 10-hectare plant includes alcohol aging facilities and a modern wastewater treatment plant converting distillery waste into biogas energy for its power requirements.

The plant has a daily rated capacity of 210,000 liters of quality ethyl alcohol.

Operations of the Bacolod-based facility was temporarily suspended in 2009.

After completing rehabilitation in 2015, the facility restarted operations in 2016.

Tanduay, which is celebrating its 165th anniversary this year, meanwhile, is the country’s top rum maker, with its products being distributed in the US and Asia.

Apart from rum, Tanduay produces spirits, wines, brandies, gins and vodka.