Philip Morris puts up $20-M Subic warehouse
Cigarette manufacturer Philip Morris Philippines Manufacturing Inc. is investing $20 million in a warehouse in Subic that will store tobacco leaves from various plantations in the region.
Armand C. Arreza, Subic Bay Metropolitan Authority (SBMA) administrator, said a two-year contract with PMPMI was signed last week, covering an existing warehouse.
“The investment would go to the rehabilitation of the structure as well as the technology to control the humidity and temperature,” Arreza said.
“It is going to be practically a giant humidor,” said Arreza, referring to the humidity-controlled case used to store cigars.
He said the warehouse was scheduled for turnover to PMPMI on Aug. 1, but that he does not know how long it would take to upgrade the facility and make it suitable for tobacco storage.
Arreza added that PMPMI was looking for a suitable site for a planned regional storage hub for leaf tobacco, for which the company was prepared to spend $80 million.
“Subic is competing with a possible site in Singapore, but we hope that this new investment provides an advantage,” he said.
“If this small warehouse would turn out a good facility, it would only need to be expanded to make a supply hub,” he added.
In another development, Arreza warned that former officials of the Subic Bay Golf and Country Club Inc. were issuing "misleading information" to elicit sympathy from Taiwanese investors and the general public.
“They are disseminating statements which are either incorrect or incomplete in a desperate move to keep the media and public’s focus away from the real issues that led to the SBMA’s takeover of the golf course facility in 1997,” Arreza said.
He said the takeover was mainly due to the former operator’s failure to pay over $17 million in rental fees as of March 31, 2007.
Arreza added that Universal International Group (UIG), which operated the club, failed to settle obligations amounting to over $12 million as of October 2005.
He said other undelivered obligations include the reconstruction and rehabilitation of the golf course into a first class international course in accordance with USGA standards, and the construction of a new first class club house, 100-room condominium, 30 villas and five-star hotel resort.
“Further improvements in the golf course which remain undelivered are the construction of additional nine holes to the course, construction of floodlighting for additional nine holes and the construction of additional 200 villas, which were secured by a performance guaranty of $1.5 million,” Arreza said.
By Ronnel Domingo - Inquirer
Armand C. Arreza, Subic Bay Metropolitan Authority (SBMA) administrator, said a two-year contract with PMPMI was signed last week, covering an existing warehouse.
“The investment would go to the rehabilitation of the structure as well as the technology to control the humidity and temperature,” Arreza said.
“It is going to be practically a giant humidor,” said Arreza, referring to the humidity-controlled case used to store cigars.
He said the warehouse was scheduled for turnover to PMPMI on Aug. 1, but that he does not know how long it would take to upgrade the facility and make it suitable for tobacco storage.
Arreza added that PMPMI was looking for a suitable site for a planned regional storage hub for leaf tobacco, for which the company was prepared to spend $80 million.
“Subic is competing with a possible site in Singapore, but we hope that this new investment provides an advantage,” he said.
“If this small warehouse would turn out a good facility, it would only need to be expanded to make a supply hub,” he added.
In another development, Arreza warned that former officials of the Subic Bay Golf and Country Club Inc. were issuing "misleading information" to elicit sympathy from Taiwanese investors and the general public.
“They are disseminating statements which are either incorrect or incomplete in a desperate move to keep the media and public’s focus away from the real issues that led to the SBMA’s takeover of the golf course facility in 1997,” Arreza said.
He said the takeover was mainly due to the former operator’s failure to pay over $17 million in rental fees as of March 31, 2007.
Arreza added that Universal International Group (UIG), which operated the club, failed to settle obligations amounting to over $12 million as of October 2005.
He said other undelivered obligations include the reconstruction and rehabilitation of the golf course into a first class international course in accordance with USGA standards, and the construction of a new first class club house, 100-room condominium, 30 villas and five-star hotel resort.
“Further improvements in the golf course which remain undelivered are the construction of additional nine holes to the course, construction of floodlighting for additional nine holes and the construction of additional 200 villas, which were secured by a performance guaranty of $1.5 million,” Arreza said.
By Ronnel Domingo - Inquirer
Labels: arreza, investment, Philip Morris, sbma, subic, warehouse
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