Mega Global putting up P1-B R&D, manufacturing hub in Batangas

Mega Global Corp., the producer of one of the country’s top sardines brands, is looking to open its first manufacturing plant in Luzon by next year to be fully operational by 2022.

The investment, valued at P1 billion, is seen to raise the company’s production by as much as 50 percent from the current capacity of 300 metric tons a year.

It would be situated in Sto. Tomas, Batangas province, and would thereby significantly cut the company’s transport costs as most of its operations are currently concentrated in Zamboanga. It would also address the increasing demand for the firm’s canned products in Luzon and overseas.

Malcolm Tiu Lim, vice president for Mega’s Zamboanga operations, said the new plant was the company’s biggest investment since the company was formed 45 years ago.

More than a processing plant, the latest infrastructure would also house a research and development (R&D) facility and would be Mega’s hub for new products in line with plans to diversify product lines.

“We are very grateful for the opportunity to invest more in our expansion and diversification plans in 2020 and to help drive economic growth in the coming years,” Mega CEO William Tiu Lim said. “This plant will also allow us to support local businesses as we plan to source our raw materials and manpower from suppliers within Luzon as part of the DTI’s (Department of Trade and Industry) ‘Buy Local, Go Lokal Initiative.’”

The canning company initially announced that it would be allocating P500 million for the construction of the plant, but further studies prompted Mega to double its budget.

The plant is expected to generate 1,000 jobs for local residents and would tap Navotas City and Bicol Region for the supply of raw materials.

Even before the pandemic triggered the need for more canned products as emergency food staples, vice president for sales and marketing Marvin Tiu Lim said Mega had been posting double-digit growths.

During the height of the lockdowns, the company was able to register triple-digit growth rates for a month or two across all its brands.

“Our market share is currently at 26 percent,” the executive said. “We’d like to grow further as we still see a lot of gaps in the market that are currently underserved. There are still a lot of markets we want to enter into.”

Mega, a family-owned company, currently has two plants in Zamboanga. It also owns the largest fishing fleet in the country and has been in the export market for over 20 years. It is present in the Middle East, Central America, the United States and Canada.

It has also pioneered the use of easy-open cans, and is known for its trademark “12-hour catching-to-canning process.”