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Alliance Tuna Increases Stake In Indonesian Plant To 80Pct

Tuna manufacturer Alliance Tuna International, Inc. has increased its stake in its Indonesian subsidiary, which the company said would give it a steady stream of profit.

In a disclosure to the stock exchange, Alliance Tuna said it raised its stake to 80% in PT International Alliance Food Indonesia — a tenth higher than its original holding — for $100,000. The company used its own funds to pay for the additional stake.

“An increased shareholding gives Alliance Tuna more control over the subsidiary. The projected high returns from the Indonesian operations will ensure Alliance Tuna’s continued growth and profitability in the future,” it said.

In March last year, Alliance Tuna paid $722,400 for the assets of PT Karabha Sakti, a tuna cannery in Indonesia. It then set up the international subsidiary to manage the assets it bought. Aside from managing PT Karabha Sakti, the subsidiary will also process canned tuna and export 100% of its output.

PT International has an authorized capital stock of $2 million (around P82 million), majority of which is owned by Alliance Tuna while the remaining 20% is owned PT Wailan Pratama, a fishing company set up by an Indonesian businessman.

The company plans to spend $900,000 to modernize the cannery, which will have a capacity of 60 metric tons of fresh tuna per day and another 20 metric tons per day for frozen tuna loins and other marine products.

Alliance Tuna President and Chief Executive Jonathan Y. Dee earlier said the new plant will likely increase its net income by 30% this year from 25% last year.

Incorporated in September 2003, Alliance Tuna processes and cans tuna for its clients using the latter’s brands.

It exports its products to European and North American markets from its production facility in General Santos City.