Published on 18 February 2013 [
manilatime.net ]
Written by MADELAINE B. MIRAFLOR REPORTER
The owner of
listed STI Holdings Inc. and business tycoon Eusebio Tanco is in talks with
Ayala Land Inc. (ALI) and other companies for joint ventures, which mainly
involve Tanco’s personal business and not those that are listed.
Tanco said in
an interview with reporters that he is in “exploratory” discussions not only
with Ayala but also with other listed companies, specifying that none of the
listed companies he is part of are involved in the talks.
“Everything
is exploratory, many things. Basically, this is non-listed so I’m exploring
with the Ayala to tie up with some properties,” Tanco said.
“I’m talking
to other parties too. [This is for businesses like] standard resort type,
commercial, but I’m not talking only to Ayala,” he reiterated.
In terms of
the plans for a joint venture, Tanco said that his discussions with other
companies vary.
“The joint
venture can be different, some of it I have plans, some of it they have plans.
We have to work as a team than anything,” he added.
Tanco also
said that he has been in talks with these companies for a relatively long time.
He indicated
that he is planning to tie up with firms that can assist him in his plans to
put-up mixed-use developments around STI schools where he has land holdings.
“STI is
putting up a lot of schools, and we are planning to do community developments
around the school,” he said.
Of all his
diversified properties around the country, Tanco specified that the smallest
would be one hectare, while the usual allocation for schools is 5,000 square
meters.
Back to
manufacturing
Tanco,
meanwhile, also expressed his intentions to go back to the manufacturing
business, and this is only if the electricity rates in the country will go
down.
“We came from
a manufacturing company. We’re no longer in manufacturing concern. But if only
we can bring down power rates because our power rates is now one of the most
expensive in the world,” he mentioned.
“If we can
bring it [power rates] down, I think our level is pretty competitive,
everything else follows. If we can bring the power rates down, we may have the
chance to get back to manufacturing,” Tanco added.
He mentioned
that that one of the biggest factors to consider in a production business are
power rates. The country’s manufacturing sector is beset by many challenges
besides high power rates, like poor infrastructure and labor mismatch.
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