IRRADIATION Solutions Inc. (ISI), a fully-owned subsidiary of publicly listed company A Brown Co., Inc., has secured funding worth P400 million for the construction of the Philippines’ first commercial Electron Beam (E-Beam) facility for contract irradiation services. Project financing has been provided by China Banking Corp.
ISI expects to draw the loan phased over the construction period of the project. Proceeds of the project financing facility will partially finance the construction of the facility and the procurement of the Electron Beam accelerator and auxiliary system from Radtech Vietnam Company Limited.
Located in Tanay, Rizal, the facility will be primarily designed to cater to food products and medical devices. Utilizing modern technology including digitalized inventory management software systems, the initial phase is designed to accommodate as much as 20,000 tons in volume every year. The E-Beam facility will also be able to provide services for the sterilization of medical masks, dressings, syringes and surgical staplers, and other applications for single-use medical devices.
ISI President Paul Juat shared, “Aside from medical use, the Tanay E-Beam and Cold Storage Facility will provide contract irradiation services to improve the quality of agricultural and fishery products. This will enable local products, fruits, and seafood to be of export quality and gain wider access to international markets.”
This objective is in line with the recently released Philippine Development Plan 2023-2028 to modernize agriculture and agribusiness and advance research and development, technology, and innovation.
“This same technology is used in more than 60 countries and is considered the most economical option for commercial sterilization methods. ISI’s E-Beam and Cold Storage Facility will not only improve the safety and quality of food products in the Philippines, but it will also create new job opportunities and stimulate economic growth in the region,” added Juat.
The Board of Investments (BOI) has granted approval for the project as Pioneering status under the Republic Act No. 11534 or the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act.
The Tanay E-Beam and Cold Storage Facility commenced construction in April 2022.
Construction progress is on schedule and commercial operations of the facility are targeted to commence by the 3rd quarter of 2023. As the facility opens, products for irradiation treatment are expected to slowly scale up as customers get accustomed to the availability of the service.
ISI is expected to contribute to A Brown’s net income starting 2024.