Davao City-based Phoenix Petroleum Philippines Inc. is expanding its product portfolio to include bitumen.
“Phoenix’s strategic focus will be on creating growth and opportunities in highly attractive industries and markets that are complementary to its core fuel business and are underpinned by strong macroeconomic fundamentals. In this instance, bitumen is one of the by-products of crude oil refining. Effectively, Phoenix is expanding its portfolio of petroleum products,” the Philippine company said.
The company has received the green light to execute a joint venture agreement (JVA) with TIPCO Asphalt Public Co. Ltd. and Carlito B. Castrillo of PhilAsphalt (Dev’t) Corp. for the purpose of operating, marketing and distribution of bitumen and bitumen-related products in the Philippines.
The partners will form a joint venture company with a total authorized capital stock of PHP 275 million (USD) 30 days after the execution of the agreement. Phoenix Petroleum and TIPC Asphalt will own 40% share each, while PhilAsphalt will own the remaining 20 percent%.
The partners plan to secure a lease from Calaca Industrial and Seaport Part (formerly Phoenix Petroterminals & Industrial Park) for a parcel of land with access to its jetty and wharf facilities to construct and build the bitumen terminal.
TIPCO Asphalt is the leading manufacturer and distributor of asphalt products for repairing, maintenance and servicing and construction of road pavements, highways and airport runways in Thailand and the Asia-Pacific region. Its asphalt products are also sold to importers and road contractors in Africa, Australia and North America.
PhilAsphalt will be responsible for the marketing, distribution and trading of all kinds of bitumen and bitumen-related products.
Phoenix Petroleum is aggressively expanding into related businesses. Last year, it acquired Petronas Energy Philippines Inc. and this year it acquired Philippine FamilyMart CVS Inc. from Ayala Land Inc. and SSI Group Inc., which has a network of 67 company-owned and franchised convenience stores.