Third Mega Global sardine canning plant for Philippines

A third canning plant is to be built in the Philippines by Mega Global Corporation as part of a P500 million (US$8m) expansion plan for the next few years.

The largest sardine canner in the country, Mega Global said the facility will be at Luzon, north of the capital Manila, on the country’s most populous island. This additional plant will increase the Mega Global’s canning capacity by 20 per cent, according to local press reports.

The company, which makes brands Mega Sardines and Mega Tuna, currently has two canning plants at Ayala and Zamboanga City, with a total production capacity of 300 tonnes or 2m cans per day.

“We are allocating at least 500 million [pesos] for expansion for the whole of this year and next year,” Mega Global’s executive vice president Michelle Tiu Lim-Chan announced at a press conference. “This is to cater to our target market here and give us access for raw materials on this island.”

As well as setting up the new canning plant, Mega Global has plans to expand into other fast-moving consumers goods (FMCG) categories by acquisition or in partnership with other brands.

News of the new plant was released as the Philippines emerges from the coronavirus crisis with a relaxation on lockdown restrictions.

In mid-March when most of the Philippines was under strict lockdown, Mega Global’s output was scaled back to 30-40 per cent of capacity because of travel restrictions on employees getting to work. It came at a time of surging domestic demand for canned fish because of the pandemic.

Now that restrictions have been lifted, Mega Global’s production is back to 80 per cent of capacity, it was reported.