JG Summit Holdings spend of US$700 mln on expansion in 2011 mostly allocated to petrochemical and airline businesses

09-May-11

JG Summit Holdings Inc. plans to spend US$700 mln on expansion this year, with most of the funds allocated to its petrochemical and airline businesses. Sale of JG Summit's controlling stake in Digital Telecommunications Philippines Inc. will reduce debt by US$600 mln, and allow for fund-raising. The asset sale is strategically good for JG Summit as it frees up capital that the company can invest in ventures with potentially higher returns. JG Summit will build a US$700 mln naphtha cracker along with expansion of infrastructure.