Aboitiz Group, one of the country’s largest conglomerates, is increasing its capital expenditures by 152 percent to P69 billion this year from the P27 billion utilized in 2021.
In a statement, the firm said on Friday, March 18, the substantial budget increase will be used to fund the growth plans for 2022 and beyond as it approaches the coming years with balanced optimism.
"Over the next 10 years, we will be more committed than ever to investing in accelerated growth and diversification. ,” said Aboitiz Group President and Chief Executive Officer Sabin M. Aboitiz.
He added that, “We will advance business and communities in the 9 Asia Pacific countries where we operate by providing products and services that are not just life-essential but life-changing.” The firm noted that it has been a long time since the company's largest capital investment will be going to a non-power business strategic business unit.
This is in line with the company’s long-term goal of balancing its portfolio by accelerating the growth of the non-power share across the years.
The Group’s infrastructure business units will get the biggest share of the 2022 budget, allocating P29 billion — a 337 percent increase from last year’s actual spending.
Allocation for land acquisition and new site development for Aboitiz InfraCapital’s (AIC) Economic Estates amounts to P7 billion, while P5 billion is earmarked for the expansion of AIC’s-telco tower business and another P5 billion for AIC’s other digital infrastructure projects.
Meanwhile, P3 billion has been set aside for the completion of AIC’s bulk water project in Davao City this year. Once operational, this water project will supply over 300 million liters of safe and sustainable water to Davaoenos daily.
The rest of the budget will be for AIC’s other projects and Republic Cement’s major maintenance and safety related capital expenditures.
The Power business unit, AboitizPower, remains focused on building more renewable energy generation capacity and maintaining the reliability of its existing assets.
AboitizPower, together with its partners, is appropriating a P28 billion budget for the development and construction of various solar power, hydro power, and battery energy-storage systems, and the continuous improvement of the reliability of baseload plants.
As it continues to double-down on its digital transformation, Aboitiz’s banking unit, UnionBank, has allocated more than P3 billion to sustain its investments in enhancing the features of its digital channels and platforms, transforming its branches and building capacity for the parent bank and its subsidiaries.
UnionBank highlights its banner projects for 2022, namely the acquisition and integration of the Citi consumer business and launch of its digital banking arm UnionDigital.
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.
The food business unit, Pilmico and Gold Coin Group, has allocated P6 billion for its various projects including the expansion of feed mills in China and Vietnam. They are set to increase the capacities of the Agribusiness division across the regions.
Here in the Philippines, a third breeder farm is set for completion this year. This puts the Farm business on track to achieve its goal of boosting local production of pork to help alleviate the impact of pork scarcity in the market.
Meanwhile, the Group’s real estate arm, AboitizLand, Inc., has allocated a capital expenditure of P2 billion for the launch of new phases of its projects – Foressa Mountain Town in Cebu and The Villages at Lipa in Batangas.