RP, NZ firms form joint venture to process, ship salmon from RP

By Doris Dumlao
Philippine Daily Inquirer
First Posted 19:38:00 03/19/2010

Filed Under: Fishing, Joint Ventures, Economy and Business and Finance

http://business.inquirer.net/money/topstories/view/20100319-259670/RP-NZ...

MANILA, Philippines--After taking over a majority stake in New Zealand’s second largest smoked salmon processor Prime Foods NZ Ltd., canned fish exporter Alliance Tuna International Inc. has set up a new venture to likewise process and export smoked salmon from the Philippines.

In a disclosure to the Philippine Stock Exchange Friday, Alliance Tuna said it had entered into a joint venture with Prime Foods to establish a new subsidiary to serve as importer and processor of smoked salmon.

The new subsidiary, named Big Glory Bay Salmon and Seafood Co. Inc. (BGB), will have its salmon processing facilities in General Santos City, near Alliance’s tuna operations. Once construction of the facilities starts next month, the capital will be increased to P47 million.

The new unit had been registered with the Securities and Exchange Commission and the Board of Investments as a new export producer of smoked salmon and its by-products. The venture is expected to start operations in the last quarter of this year.

Under the Provisions of the Omnibus Investment Code of 1987, BGB will be entitled to an income tax holiday for four years starting in July 2010.

Alliance Tuna will have a 50 percent plus one share stake in the salmon venture, with the balance held by Prime Foods. Alliance Tuna also owns 50 percent and one share in Prime Foods, while the rest of the shares are held by a trustee of HC & JW Studholme Trust.

Prime Foods carries both hot and cold salmon and also produces smoked New Zealand Green Lip Mussels and other food items. Its smoked seafood factory is located in the village of Hororata, Canterbury under the Southern Alps of New Zealand’s South Island.

Alliance Tuna started commercial operations in 2004, engaging in tuna processing, canning, and export of canned tuna products. It exports to over 50 countries.

In 2008, Alliance Tuna organized a joint venture with P.T. Wailan Pratama and invested in P.T. International Alliance Food Indonesia to acquire a tuna cannery in Bitung, North Sulawesi.