Alliance Select's tuna processing plant. (Photo: ASFII)
Alliance Select gains better control of its tuna supply
Tuesday, September 11, 2012, 01:50 (GMT + 9)
Alliance Select Foods International Inc (ASFII) has bought six commercial tuna vessels worth USD 15 million to gain better control of its fish supply for its canned tuna processing plant in General Santos City.
In a disclosure to the Philippine Stock Exchange early this Monday, Alliance said that it had acquired the vessels from BSJ Fishing & Trading Inc in a process that fully settled BSJ’s obligation to ASFII for fish deposits.
“With the acquisition of the fishing vessels, ASFII expects to ease its dependence on fish suppliers for its tuna business as it will give the company direct access to raw materials,” ASFII Spokesperson Rajat Balain stated.
This moves ASFII closer to a position of “vertical integration” following the incorporation of PT Van de Zee last May; PT Van de Zee is an Indonesian fishing company that is 80 per cent-owned by ASFII’s Indonesian subsidiary PT IAFI. The Indonesian Government has already granted it a fishing allocation, Philippine Daily Inquirer reports.
In addition, ASFII has more recently struck a USD 2.18-million deal to acquire 80 per cent of New Zealand-based salmon farming company Akaroa Salmon NZ Ltd as part of its effort to become an important salmon producer in the region.
According to Alliance Select, the Akaroa investment will fortify ASFII’s salmon offerings and direct access to raw materials, GMA News reports.
The deal was also meant to target a particular market segment by supplying the NZ company’s fresh portion cuts to hotels and restaurants in Singapore, Hong Kong, the US, South Korea and Japan.
This acquisition, in turn, follows the USD 8.5 million-takeover of Massachusetts, US-based salmon processor Spence & Co Ltd.
ASFII’s expansion overseas in recent years represents the company’s wishes to expand into a regional food company with a “decidedly Filipino DNA.” It is currently seeking opportunities in regional seafood companies with high margins and high value products.
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