San Miguel planning US$34b investments, says president

Manila

SAN Miguel Corp plans to invest US$34 billion in an oil refinery, an integrated steel complex and an ocean-tide power plant as the Philippines' largest company by sales expands amid forecasts for robust economic growth in the country, according to its president.

The company, which sells nine of every 10 beers in the Philippines, is also "evaluating and may bid" for Saigon Beer Alcohol Beverage Corp, president Ramon Ang told reporters on March 31. Vietnam may provide an anchor to increase its brewery business as consumption in the country is growing at an annual rate of at least 10 per cent, five times that in the Philippines, he pointed out.

"The businesses we ventured into have matured, such that the company is in a very stable position," Mr Ang said, citing compounded annual 20 per cent growth in recurring profit and a near four-fold increase in assets since 2008 following San Miguel's diversification from food and drinks into non-allied industries such as toll roads and resources. Excluding one-off items, profit will rise at least 20 per cent to about 60 bill…