Wellex Industries to sell assets to boost liquidity

The Gatchalian-led Wellex Industries Inc. is planning to sell some assets to raise funds and enhance liquidity in preparation for a more difficult business environment next year.

At the sidelines of its annual stockholders meeting Thursday, company president Wesley Gatchalian said they may dispose of some equipment owned by a non-operating subsidiary, Plastic City Industrial Corp. (PCIC).

"The board hasn’t approved it yet but that’s one of the options we are looking at to gain more cash. The properties or lands, meanwhile, will be kept by the company," he said.

PCIC and its units have ceased operations and decided to just lease out their warehouse facilities. The company owns around 40 warehouses.

Wellex, meanwhile, is all set to enter the mining and oil exploration sectors. Gatchalian said they are in talks with several Chinese companies for potential joint ventures.

"Our interest is more on chromite ore, gold and copper, not nickel because its price has dropped 100 percent in the past months," Gatchalian noted.

Earlier, Wellex said it was looking at about 10 mining sites in Palawan province and Caraga region, including Agusan del Norte, Agusan del Sur, Dinagat Islands, Surigao del Norte and Surigao del Sur. (abs-cbn)

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