Investment holding firm A. Brown Co. Inc. said Tuesday that its subsidiary, Surigao Greens Agri Corp., has bought a palm oil milling company in Surigao del Sur and several lots with a combined total of 7 hectares.
Financial details of the transactions weren’t disclosed.
A Brown said that Surigao Greens the palm oil mill it acquired is located in Tambis town and has a rated capacity of 10 metric tons an hour.
The listed company said the purchase of the mill will allow access to an operational and cost-efficient crude palm oil milling plant that is able to source palm oil fresh fruit bunches from nearby plantation farms in Surigao and Agusan.
The acquisition will also provide operational and supply chain synergies with existing palm oil milling and refinery facilities in Impasug-ong, Bukidnon that are currently operated by A Brown Energy and Resources Development Inc., another A Brown subsidiary.
Operational and cost-cutting synergies within the group can be realized by having access to more palm oil fresh fruit bunches from nearby plantations, reduced logistics and transport costs, and being better positioned to pursue further growth opportunities in the Group’s palm oil business.
