By Jenniffer B. Austria

Tanduay Holdings Inc., the liquor subsidiary of beer and tobacco magnate Lucio Tan, will complete the P600-million expansion of its manufacturing facility in Pulupandan, Negros Occidental in October.

Tanduay president Wilson Young said the new facility would increase the capacity of its unit Asian Alcohol Corp. by 100,000 liters per day.

The company last year spent P300 million for the expansion of the facility and will earmark another P300 million this year for its completion.

Tanduay has a market share of 40 percent in the rhum, brandy and gin sector.

Young said sales volume this year was expected to grow between 5 percent and 8 percent from last year?s double-digit growth of 15 percent. He blamed the lower volume to the impact of economic crisis on sales as well as higher prices because of higher taxes.

Young said Tanduay raised its prices by P30 per case in January because of the rising cost of materials and higher taxes on liquor products.

Tanduay has finished constructing its fourth plant in Cagayan de Oro, Misamis, within the company?s 10-hectare property and beside the complex owned by sister firm, Asia Brewery Inc. The P600-million new plant has an integrated washing and bottling line that will supply customers, who account for 33 percent of total sales.

The company in 2008 posted am unaudited net income of P400 million from the P90-million net profit recorded in 2007 as sales volume grew 15 percent to 17.5 million cases from 2007 level of 15.2 million cases.