JG Summit requests for extension of import duty-free privilege

11-Apr-05

JG Summit Petrochemical Corp. (JGSPC) has sought extension of the duty-free importation of capital equipment to the year 2007 from the Board of Investments (BOI). The machinery for its proposed naphtha cracker plant is scheduled to be delivered only by 2007, as completion of the project is in 2008. Originally, the incentive was to expire by 2006. JGSPC had recently got BOI approval for the registration on a pioneer basis as a new domestic producer of ethylene, propylene, pyrolysis gas and other by-products. Based on its application documents with the BOI, the JGSPC naphtha cracker project would have a cost of P26.247 billion to be financed primarily from loans amounting to P18.373 billion and equity contribution of P7.874 billion.