CONGLOMERATE San Miguel Corp. (SMC) is eyeing multi-billion-dollar investments in the country, and is joining an upcoming auction of Vietnam’s prized beer companies, in a bid to fortify its position that will generate more revenues and profits.
“At the moment, we are evaluating the deals, and we will definitely join the public bidding of the Vietnamese government for the sale of Saigon brewery,” SMC President Ramon S. Ang said late Friday afternoon.
Vietnam’s government will divest its entire stakes in Saigon Beer Alcohol Beverage Corp., more known as Sabeco, and Hanoi Beer Alcohol Beverage Corp., or Habeco.
Ang said Sabeco is “a very promising company”, and Vietnam’s growth in beer consumption is double digit per year, as against the Philippines, with less than a 2-percent growth a year.
He said SMC would solely join the bidding.
Ang leads SMC’s businesses in beverages, food and packaging (San Miguel Brewery Inc., Ginebra San Miguel Inc., San Miguel Pure Foods Co. Inc.); fuel and oil (Petron Corp.); energy and power (SMC Global Power); infrastructure (Eagle Cement Corp.); and banking (Bank of Commerce).
In the country, Ang said SMC’s power unit is seriously considering putting up a 1,200-megawatt (MW) tidal power project in an undisclosed location, an oil refinery with a capacity of 250,000 barrels a day and a steel mill.
“I believe in the next few months, isa-isa ko ipapakita but isa dun is ocean tidal project. Napakalaki niyan at napakamura to operate dahil walang fuel. Isang tayuan lang but it will run forever,” Ang said.
Tidal energy is power produced by the surge of ocean waters. In the Philippines there is a potential to source as much as 18,000 MW of capacity from tidal energy.
The company’s plan is to put up a 1,200-MW, tidal-power project in an undisclosed location. The necessary documents would soon be fielded with the Department of Energy and the Bureau of Investments, Ang said.
“Ang ocean tidal technology aabot mga $3-million per megawatt so malaking project ito,” said Ang who added the company even hired foreign consultants to conduct a technical feasibility study on the project.
He is determined to sell at P2.50 per kilowatt hour (kWh) the electricity that will be sourced from the tidal-power project, which would take five years to construct.
“Hindi ako hihingi ng FIT (Feed-in-Tariff) dun, kasi kawawa ang taumbayan. Bebenta ko lang mura, siguro mga P2.50 per kwh para makababa presyo ng kuryente. FIT kasi is charging it to the pockets of everyone, nakakahiya yun. Kahit hindi mo ginagamit, nagbabayad ka,” Ang said.
The conglomerate is also looking at putting up a steel mill that could cost about $15 billion.
“Nag-aaral din tayo magtayo ng isang integrated steel mills, meaning you produce steel from iron, ore, all the way down to finish product. Itong planta na itatayo may kasamang stainless steel plant that can produce 300 series at 400 series. Mga 15 billion US dollars ito,” said Ang.
Ang also refused to disclose where the steel mills would be put up since the property is still under negotiation.
“Kung gagawa ka ng steel mill, it will take you mga three and half years,” he added.
Last month, Ang revealed that Petron plans to court giant firms based in Saudi Arabia, Kuwait, and Taiwan to make happen a plan to put up a multi-billion dollar refinery in the country.
Back then, Ang said a 250,000 barrels a day refinery could cost $10 billion. Last Friday, Ang said the project cost is estimated at $15 billion.