DAVAO CITY — The government is set to rehabilitate the state-run Legaspi Oil Mill Inc. based here to improve its production capacity to 600 metric tons per day.
In an interview on Monday, Legaspi Oil Mill, Inc. resident manager Jaime L. Jose said the current production of 400 metric tons per day is attributed to equipment defects. She said the repair would take two to three months.
The government assumed management of the oil company last year after the joint venture contract with MVP Group of Companies ended.
Despite the low production, Jose said the company’s revenue as of August 2018 has already reached PHP2 billion.
“Since we assumed operation tumaas na and revenue (the revenue went up) and going positive every month,” Jose said.
Jose said Legaspi Oil will set up 11 buying stations in Davao City, Mati, Maco and the Island Garden City of Samal to bring the operation of the company closer to the farmers.
“We want these stations closer to coconut plantations and in areas where there are small coconut farm growers. We could perhaps tap a hundred coconut farmers aside from the big coconut plantations that we source our supply of copra” he said.
Legaspi Oil processes crude coconut oil marketed to Europe, US, and Japan, although a portion of its production is intended for the domestic market.
Among the government-owned coconut oil mills in Mindanao aside from Legaspi Oil are Granexport Manfucaturing Corporation, Cagayan de Oro Oil Company, Inc. and Iligan Coconut Industries, Inc. (Digna D. Banzon/PNA)
