MEGAWIDE Construction Corp.’s pre-cast plant capacity is expected to more than triple to 40,000 cubic meters per month (cu/m/month) by 2024 or 2025.
“The company has finalized its plan to expand its pre-cast plant capacity to approximately 40,000 cu/m/month, from the current 13,000 cu/m/month, in various high growth locations across the country,” said the report of independent auditors from P&A Grant Thornton on the company’s application of proceeds from its preferred shares offering.
Megawide recently opened a precast plant in Taytay, Rizal. The plant can produce over 35,000 cubic meters of precast annually, adding to the company’s current production capacity of 96,000 cubic meters.
“The targeted capacity of 35,000-40,000 cu/m/month is originally projected to be achieved by the end of 2024-2025, subject to market conditions and operating environment,” the report added.
The company has allocated P576.8 million to this project from its preferred shares offering proceeds of P4.36 billion.
The independent auditors reported that P133.5 million had been disbursed as of Sept. 30, 2022. “Disbursements for the quarter then ended amounted to P110.0 million.”
“The expansion of its construction services and ancilliary businesses require additional funding, and the company expects the progress of these initiatives to accelerate as soon as new infrastructure contracts are secured within the year,” the auditors said.
According to Megawide, it expects its new pre-cast plant in Rizal to provide and meet demand for existing and upcoming projects.
“It will ensure availability of precast for its infrastructure projects such as the ongoing Malolos-Clark Railway Project Package 1 and CP (contract package)-104 of the Metro Manila Subway project, which will begin construction this year,” the company said in a statement.
The company is eyeing more opportunities in the affordable housing space, with precast as its main structural component. — Arjay L. Balinbin
