By The Financial District
A Brown Unit Bags ₱400-M Funding For E-Beam Facility
A unit of listed holding firm A Brown Co., Inc. has secured a P400-million funding for the construction of a commercial electron beam or E-beam facility and cold storage in Rizal province.
Photo Insert: The project in Tanay, Rizal will be primarily designed to store food products and medical devices.
In a recent press release, A Brown said its subsidiary, Irradiation Solutions, Inc., will use the financing facility from China Banking Corp. for the project’s construction and procurement phase, as well as to fund the auxiliary system from Radtech Vietnam Co. Ltd.
The project in Tanay, Rizal will be primarily designed to store food products and medical devices. In its initial phase, the facility is expected to accommodate as much as 20,000 tons every year.
The E-beam facility, which is said to be the first commercially available in the country, will also have services such as sterilization of medical masks, dressings, syringes, surgical staplers, and other single-use medical devices.
The facility is set to provide contract irradiation services that are said to improve the quality of agricultural and fishery products.
“This will enable local products, fruits, and seafood to be of export quality and gain wider access to international markets,” Irradiation Solutions President Paul B. Juat said.
The E-beam technology is described as the “most economical option for commercial and sterilization methods” in more than 60 countries. “It will not only improve the safety and quality of food products in the Philippines, but it will also create new job opportunities and stimulate economic growth in the region,” Juat said.
According to the company, the Board of Investments (BOI) has approved the project’s “pioneering status” under Republic Act No. 11534 or the Corporate Recovery and Tax Incentives for Enterprises Act.
The facility started construction in April 2022 with commercial operations expected to begin by the third quarter of this year.
“As the facility opens, products for irradiation treatment are expected to slowly scale up as customers get accustomed to the availability of the service,” A Brown said,
With the E-beam facility, the listed company expects Irradiation Solutions to contribute to A Brown’s net income starting in 2024.
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