Mindanao meets the Aboitiz’s Great Transformation
With over a century of industry expertise and experience behind them, the Aboitiz Group looks forward to the next 100 years as it undergoes its ‘Great Transformation’ growth strategy. With decades of history in Mindanao, the Group is utilizing disruptive technologies and reinvigorated team members to advance businesses and communities in the area.
In a media conference held in Davao recently, the executives of various Aboitiz Group’s business units namely, AboitizPower, Aboitiz Data Innovation, Aboitiz InfraCapital, Aboitiz Construction, Republic Cement, and Pilmico highlighted their performance and progress, and provided a glimpse of what else the Great Transformation would bring.
Aboitiz Power
Even with a power supply abundance in Mindanao, AboitizPower remains bullish about business prospects in the region as the company gains fresh inspiration from its purpose of transforming energy for a better world.
AboitizPower aims to grow its total generation capacity to 9,200 MW by the end of this decade, half of which will be sourced from renewable energy. To this end, the company is optimizing its existing baseload facilities to meet critical market needs as baseload demand in the Philippines is still expected to increase. The energy firm currently has 1,000 MW of disclosed renewable energy projects, mostly concentrated in Luzon, but this is only the beginning.
AboitizPower is progressing with its 49-MW battery energy storage system (BESS) project in Maco, Davao de Oro, having completed the part of the control system that automates the hybrid operation of the diesel and battery barge during ancillary service.
The firm’s run-of-river hydro business Hedcor recently inaugurated the country’s first National Operations and Control Center (NOCC), which allows them to manage 21 hydropower plants in Luzon and Mindanao as well as one solar facility in the Visayas.
The new digital substation in Binugao, Toril, Davao City boosts the efficiency, reliability, and availability of power supply in the southern part of Davao City.
On the distribution front, AboitizPower subsidiary Davao Light is building two new digital substations this year to address the growing power demand within its franchise area. This is aligned with the AboitizPower Group’s digitalization and innovation initiatives. The digital conversion of substations boosts the efficiency, reliability, and availability of power supply through real-time control and protection operations.
Davao Light and Cotabato Light have also been making great strides in reaching a 100% completion in their respective Rural Electrification Program. Davao Light is at 99.02% and is aiming to energize fourteen more sitios by the end of the year. Meanwhile, Cotabato Light is targeting to complete the electrification of all 81 communities within its franchise area by November.
The BEST Bus Project of the City Government of Davao, Davao Light and Power Co., Aboitiz Foundation Inc., GET Philippines, and QEV Technologies has recorded zero harmful emissions in its one year of operations.
Using power for mobility, we continue to support Business for Environmentally Sustainable Transformation (BEST) Bus Project, the first fully-electric shuttle service in Mindanao, to continue its purpose of providing eco-friendly, safer and convenient transportation, advocating to “be green, be digital, and be kind” for a better community. The project is a partnership between the City Government of Davao, Davao Light & Power Co., Inc., Aboitiz Foundation Inc., GET Philippines, and QEV Technologies.
With the size and reach of AboitizPower, the company is in a unique position to help transform the Philippine energy landscape. To scale up and grow its business, the company focuses on building a strong pipeline of projects and improving the operational efficiency of existing plants and distribution networks to serve customers better, including Mindanao.
Aboitiz InfraCapital
Aboitiz InfraCapital (AIC) maintains its purpose-driven approach as it infuses innovation in quality infrastructure projects that spur economic growth and uplift communities.
AIC subsidiary Apo Agua Infrastructura Inc. (Apo Agua) has taken over and ramped up construction work of the ₱12-billion Davao City Bulk Water Supply Project (DCBWSP). With this, Davao residents stand to benefit from a new and sustainable water system by the first quarter of 2023. The DCBWSP of Davao City Water District (DCWD) is the first of its kind in the country, with a water-energy nexus design concept where renewable energy will be generated through an integrated hydroelectric power plant. This state-of-the-art landmark project will give Davao City access to both surface water from the Tamugan river on top of its current ground well sources. Apo Agua’s Davao City Bulk Water Supply Project is set to supply 300 million liters of safe and sustainable water daily to the Davao City Water District which will then be in charge of the distribution.
Tamugan River is set to be Davao City’s new water source, which will be harnessed through the Davao City Bulk Water Supply Project of Davao City Water District and Apo Agua Infrastructura, Inc.
AIC also continues its development of Economic Estates throughout the country. Lima Estate, its largest project in Lipa and Malvar, Batangas, which won a 5-star BERDE-District Certification, is quickly emerging as a center for commerce in the Batangas province. Its 30-hectare Central Business District recently broke ground for new commercial lots and has started the construction of the first office building in its Office Park.
In addition, AIC also broke ground on a 57-hectare industrial expansion early this year. Projects in Mactan Economic Zone 2 Estate and West Cebu Estate are also well underway. A 39-hectare expansion in the West Cebu Estates is ongoing, catering not just to heavy but also light and medium industries for a diversified locator mix. There are also plans for its own commercial business district to start construction in 2023 to include commercial areas as well as housing and dormitories.
The company recently entered into a landmark deal with Megawide Construction Corporation (Megawide) and GMR Airports International (GAIBV) for the acquisition of shares in GMR Megawide Cebu Airport Corporation (GMCAC), the developer and operator of the award-winning Mactan-Cebu International Airport (MCIA). AIC is acquiring a 33 and 1/3% minus 1 share stake in GMCAC through a combination of a primary infusion and secondary purchase of shares from Megawide and GMR Airports International, B.V. (GAIBV) for a total consideration of PhP 9.5 billion.
Megawide and GAIBV have also agreed to issue exchangeable notes to AIC for the aggregate amount of PhP 15.5 billion. The exchangeable notes will mature on 30 October 2024, and will be exchanged by AIC for the remaining 66 and 2/3 % plus 1 share of GMCAC’s outstanding capital stock. GMR Infrastructure Limited will continue to provide support as the Technical Services Provider to GMCAC.
AIC is ready to support the travel sector which has been steadily improving in the past few months and contribute to the growth trajectory of MCIA and the surrounding communities. The company will continue to discuss its remaining unsolicited proposals with the government for other regional airports such as Bohol, Laguindingan and Bicol airports and hopes to move forward with these soon.
Aboitiz Construction
Aboitiz Construction continues its expansion into operations in heavy and light industries, infrastructure and maintenance sectors.
For the heavy industries belt, ACI recently completed the design and construction of mooring dolphins and breasting dolphins for the installation of the floating Battery Energy Storage System (BESS) for AboitizPower’s Therma Marine, Inc., in Davao de Oro. The BESS will contribute to a more steady and reliable supply of electricity in the Mindanao grid.
ACI contributed to the completion of the installation of the floating Battery Energy Storage System (BESS) for AboitizPower’s Therma Marine, Inc. (TMI) in Davao de Oro. This system will fortify TMI’s capability to support the Mindanao grid.
Under light industries, ACI is pursuing site development works for LIMA Estate’s industrial land expansion project in Batangas. Once completed, the project will accommodate new businesses in the area and generate 22,000 job opportunities. ACI is also implementing what will be the largest warehouse of one of the major logistics players in the Philippines. It is a multi-storey building that will accommodate an automated sorting and storage system in Paranaque.
Amplifying the Group’s Great Transformation, ACI recently tapped international visionary consultants Fragile to Agile to design the company’s digital transformation roadmap that will propel them towards becoming the top-of-mind construction company in the country.
CitySavings
UnionBank’s thrift subsidiary, City Savings Bank (CitySavings) continues to introduce innovative digital initiatives and relevant products to deliver the best customer experience to the mass market.
As the thrift bank subsidiary of Union Bank of the Philippines (UnionBank) and member of the Aboitiz Group, CitySavings is ramping up its digital transformation to deliver the best customer experience to existing clients and expand to underserved markets. This has been led by the new CitySavings Chairman Henry Aguda, who is also the UnionBank Chief Technology and Operations Officer and Chief Transformation Officer.
While maintaining its lead in the teachers’ salary lending market, CitySavings has grown and diversified its loan program. With regards to affiliate banks, Bangko Kabayan, First Agro-Industrial Rural Bank and Progressive Bank have merged with Bangko Kabayan as the surviving entity. This streamlining provides Bangko Kabayan with a wider reach to offer its MSME products and services nationwide.
As it undergoes its Great Transformation, CitySavings is poised to become the Philippines’ leading digital mass market bank, paving the way for inclusive and sustainable prosperity nationwide.
Republic Cement
Republic Cement was able to offset its plastic packaging footprint from 2020 to 2022 year-to-date, which is equivalent to over 890 dump trucks of plastic waste.
More than two decades ago, Republic Cement through ecoloop, its official resource recovery group, pioneered the use of alternative fuel in Philippine cement manufacturing through co-processing. Today, Republic Cement is proud to announce that the company has achieved plastic neutrality, in addition to helping other companies achieve the same.
By collecting and co-processing the equivalent volume of residual plastic waste as what is used in the packaging and transport of its cement products, Republic Cement has been able to offset its plastic packaging footprint for 2020 to 2022 year-to-date. This is equivalent to over 890 dump trucks filled with plastic waste. This achievement of Republic Cement goes to show that doing well by providing high-quality products, and doing good through promoting sustainability, go hand-in-hand in the Great Transformation.
Republic Cement is also actively supporting other organizations in both the private and public sectors in achieving plastic neutrality as well as support in compliance with the newly passed Extended Producer Responsibility Act of 2022.
Pilmico
On its 60th anniversary, Pilmico remains to be one of the country’s top flour manufacturers with an international port that facilitates the importation of raw materials directly to their plant in Iligan City. (File photo)
Pilmico and Gold Coin Group’s (Pilmico) roots are deeply embedded in Mindanao where it all started 60 years ago formerly as Pillsbury-Mindanao Flour Milling Corp. Inc with a flour milling plant in Iligan. Since then, the food subsidiary of the Aboitiz group has grown to be one of the top flour manufacturers in the Philippines and has ventured further into swine, eggs and animal feeds production. Through its acquisition of Gold Coin Management Holdings in 2018, Pilmico’s reach expanded further by providing scientifically-balanced animal nutrition to countries in the Asia-Pacific region.
This 60th anniversary milestone also marks Pilmico’s journey towards the Great Transformation. This means continuously finding solutions and opportunities to better serve the lives of its customers through innovative and quality products and services.
Innovation for Pilmico comes in the form of creating solutions to address the specific needs of its customers. Their state-of-the-art facilities such as our meat-cutting facility Tarlac MeatMasters and the newest breeder and nursery farm are equipped with technologically advanced equipment and processes to ensure efficient production. Elite XP, their hog feeds brand, recently reformulated to speed up pigs' efficient growth and productivity to boost local swine production. Furthermore, as pet ownership has increased over recent years, pet foods are becoming one of the most rewarding ventures for Pilmico. Their brand ‘Woofy’ was reformulated to add more nutrients like omega fatty acids in order to create a more balanced diet for dogs, all while maintaining affordability.
At its core, Pilmico continues to be a partner for growth to all its customers and stakeholders.(PR)
Photos from Aboitiz