MANILA, Philippines?Alliance Tuna International Inc. has formed a subsidiary in Indonesia, called PT International Alliance Foods Indonesia.

The move, which was recently approved by the board of Alliance Tuna, came after the company bought the assets of PT Karabha Sakti, a tuna cannery in Bitung, Indonesia, according to company corporate information officer Rjat Balain.

?The investment in Indonesia ensures a steady access to raw material supply and gives Alliance Tuna an entree into the world?s most fertile fishing grounds,? Balain said in a disclosure.

He also said the acquisition would enable Alliance Tuna to expand its operations and marketing reach to support future growth and profitability.

Alliance Tuna acquired 70 percent of PT Karabha Sakti for $722,400, or about P28.6 million.

The new subsidiary will start operations in August, Alliance Tuna earlier said.

Alliance Tuna planned to spend this year an additional $900,000, or about P35.7 million, to modernize the Bitung plant and raise its capacity to 60 metric tons a day on top of a capacity to process 20 MT a day of frozen tuna loins and other marine products.

The company?s key business activity is the processing, canning and export of canned tuna.

Its primary export markets are Europe and North America, which buy 84 percent of its total export sales. Elizabeth S. Lacson