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Pulp Mill Seeking Loan in Iligan City, Philippines

Iligan city-based abaca farm supplying 30T/month fiber, seeks funding for expanding to pulp mill.

Established 1-5 year(s)
Employees 50 - 100
Legal Entity C Corporation
Reported Sales USD 4.2 million
Run Rate Sales USD 4.2 million
EBITDA Margin 25 %
Industries Tree Farms + 1 more
Locations  Iligan City
Local Time 11:39 AM Asia / Manila
Listed By Business Owner / Director
Status Active
Overall Rating
Seeking Loan
USD 10.6 million for 9.0% annual interest, 12 years (Native Currency: PHP 600,000,000)
Reason: Seeking funding to expand the business to start own pulp mill manufacturing facility. The business'... View More
Collateral Available: USD 0
Includes physical assets worth USD 7.2 million
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Business Name
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Business Overview
- Based in Iligan City, the business has been operational for four years, focusing on the cultivation of abaca plants, a renowned natural fiber known for its strength and durability.
- The company currently supplies raw abaca fibers, with a processing capacity of 30 tons per month, capable of scaling to 60 tons per month with additional investment.
- The business serves three main distribution clients across the Philippines, primarily supplying to pulp mills with monthly orders, ensuring stable revenue streams.
- The business holds a license as a farming establishment and is in the process of securing an export license, aimed at expanding its market reach globally.
- Currently, the company generates profits ranging from PHP 4.5 million to PHP 5 million monthly but projects an increase to PHP 10 million to PHP 12 million with the expansion of operations.
- Plans are underway to establish an in-house pulp mill to enhance value-added manufacturing, producing pulp paper tailored for the production of tea bags and specialty papers, which are in high demand in countries like the United States, Canada, Germany, Japan, and South Korea.
Products & Services Overview
The business cultivates and supplies raw abaca fiber, a high-quality natural fiber known for its exceptional strength and durability.
Primarily serving pulp mills across the Philippines that use the material for manufacturing specialty paper products.
With plans to establish an in-house pulp mill, the business aims to move into value-added production of abaca pulp paper, specifically tailored for tea bags, filter paper, and high-grade specialty papers.
Assets Overview
Physical assets include:
- Land: PHP 300 million.
- Equipment (baling machines, trucks, warehouse components): PHP 80 million.
- Stock: PHP 30 million.
Facilities Overview
The business operates a 600-hectare owned farm currently under harvest, with a rented warehouse facility costing PHP 60,000 per month. Located in Iligan City, Lanao del Norte.
Capitalization Overview
Self-funded.
No external loans or funding raised.
There are 7 partners in the business.
Recent Activity
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Disclaimer: SMERGERS is a regulated marketplace for connecting business sell sides with investors, buyers, lenders and advisors. Neither SMERGERS represents nor guarantees that the information mentioned above is complete or correct.
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