Aboitiz Group sets P69B capex for 2022, up 152% │ GMA News Online
The Aboitiz Group conglomerate said on Friday it had planned 69 billion pesos in capital expenditure (capex) this year, 152% more than the 27 billion pesos spent by the company in 2021.
In a statement, Aboitiz Group said the substantial budget increase will be used to fund the company’s growth plans for 2022 and beyond “as it approaches the years ahead with balanced optimism.”
The company said its infrastructure business units would get the biggest share of 2022 capital spending, allocating 29 billion pesos, a 337% increase over last year’s actual spending.
Meanwhile, the allocation for land acquisition and new site development for the Aboitiz InfraCapital (AIC) economic domains amounted to 7 billion pesos, while 5 billion pesos are earmarked for l expansion of AIC’s telecommunications tower business and an additional 5 billion pesos to AIC’s other digital infrastructure projects.
The company has also set aside 3 billion pesos for the completion of AIC’s bulk water project in Davao City this year.
“Once operational, this water supply project will provide daily more than 300 million liters of clean and sustainable water to Davaoenos. The rest of the budget will be for other AIC projects and major capital expenditures related to Republic Cement maintenance and security,” he said.
AboitizPower will receive a budget of 28 billion pesos for the development and construction of various solar, hydroelectric and battery energy storage systems, and the continuous improvement of base station reliability.
Aboitiz’s banking business, UnionBank, has allocated more than 3 billion pesos to support its investments in improving the functionality of its digital channels and platforms, transforming its branches, and building the capacity of the parent bank and of its subsidiaries.
The company said UnionBank’s flagship projects for 2022 will be the acquisition and integration of Citi’s consumer business and the launch of its UnionDigital digital banking arm.
The bank is also on track to open its innovation campus in San Pedro, Laguna and continue its cloud transformation initiative to further improve the agility of its business operations, according to Aboitiz Group.
The company’s food business unit, Pilmico and Gold Coin Group, have allocated 6 billion pesos for its various projects, including the expansion of animal feed factories in China and Vietnam.
The two companies are ready to increase the capacities of the agri-food division in the regions, said the Aboitiz group.
“Here in the Philippines, a third livestock farm is due for completion this year. This puts the agricultural company on track to achieve its goal of boosting local pork production to mitigate the impact of pork shortages. in the market,” he said.
On the other hand, the company’s real estate arm, AboitizLand Inc., has planned a capital expenditure of 2 billion pesos for the launch of new phases of its projects – Foressa Mountain Town in Cebu and The Villages at Lipa in Batangas.
“Over the next 10 years, we will be more determined than ever to invest in accelerated growth and diversification. We will advance businesses and communities in the 9 Asia-Pacific countries where we operate by providing products and services that are not just essential to life, but life-changing,” said Sabin Aboitiz, President and Chief Executive Officer of the Aboitiz Group.—AOL, GMA News