BOI approves P46 M plastic pellets plant

The Board of Investments (BOI) has granted incentives to a new P46 million plastic pellets plant in Cavite.

The BOI approved Portal Steel Inc.’s application for registration as a new export producer of plastic pellets under the export activities of the Investment Priorities Plan.

The category covers production or manufacture of non-traditional export products with an export requirement of at least 50 percent if Filipino-owned and at least 70 percent if foreign-owned.

Portal Steel’s P46.3 million plant is located in Carmona, Cavite with a registered capacity of 2,400 metric tons per year.

According to the BOI, at least half of the plant’s production is expected to be exported to Southeast Asia and other Asian countries in compliance with its registration as a Filipino-owned company.

The pellets are intended for the manufacture of food and beverages packaging products, plastic packaging bags, and plastic gear box motors, among others.

“This bodes well for more firms to export their products while also catering to the demands of the domestic market,” BOI managing head Ceferino Rodolfo said.

Portal Steel has been registered with the Securities and Exchange Commission since 2013 and it has an existing operation for scrap metal recycling in Valenzuela.

The firm acquires scrap metals from structure of old buildings, used vehicles, and salvage vessels. The gathered metals are then sorted and checked for usable and functioning materials before exporting.

The BOI said the plastic pellets project qualified for registration since there will be infusion of new investments and its location in Cavite is not contiguous to its existing operation.

Plastic pellets are essential raw plastics and are transported to manufacturing sites where they are re-melted and molded into final products such as plastic bags, bottles or toys.

The plastic pellet market covers the automotive, construction, electronics, machinery, packaging sectors.