JG Summit Holdings (JGS) of ultra bilyonaryo Lance Gokongwei is pumping in P5 billion into its red ink-spewing subsidiary, JG Summit Olefins Corporation.
During its November 10 board meeting, JGS approved the additional capital infusion to “to pay off its outstanding obligations resulting from its expansion projects and to cover uncertainty of the petrochemical industry during a period of declining market demand and rising input costs.”
JGS expanded its naphtha cracker facility in Btags two years ago 20202
JGS Olefins has amassed a total of P9.4 billion losses in the last two and a half years
The fresh cash infusion was made a month after JGS Olefins finally obtained a a three-year safeguard duty on imports of high density polyethylene pellets (HDPE) pellets and granules as a shield from the flood of cheap imports.