Gokongwei conglomerate JG Summit Holdings is injecting P11 billion into wholly-owned subsidiary JG Summit Olefins Corp. (JGSOC) to bolster its operational capabilities.
In a regulatory filing, JG Summit announced that its board has approved an additional capital infusion, primarily aimed at settling maturing obligations of JGSOC and providing operational support.
The proposed capital injection, contingent on regulatory approvals, will involve JG Summit subscribing to additional JGSOC shares, to be issued from existing unissued shares.
JG Summit said “JGSOC will employ the funds to meet its expansion project commitments and sustain operations amidst a period of declining market demand and escalating input costs.”
JGSOC’s scope encompasses the design, construction, operation, and maintenance of a naphtha cracker plant and associated facilities.
These facilities produce various products, including polymer-grade ethylene, polymer-grade propylene, pyrolysis gasoline, mixed C4, pyrolysis fuel oil, and other related by-products.