Tanduay Holdings Inc has earmarked a PHP2 billion (US$37m) to invest in an expansion that may include acquisitions between now and 2007.

The money, which will come from a combination of internally-generated funds and debt, will finance the construction of a new liquor plant in Cagayan de Oro in the southern Philippines.

The plant will turn out 40,000 cases of spirits a day and will cost between PHP500m and PHP1 billion to build.

However, the Philippine company also announced yesterday that it would seriously look at new markets that will expand its customer base. It added that it would aggressively shop around for acquisitions.

The company has already lined up two acquisitions for this year, although executives wouldn't reveal details yesterday.