MANILA, Philippines ? After taking over a majority stake in New Zealand's second largest smoked salmon processor Prime Foods NZ Ltd., canned fish exporter Alliance Tuna International Inc. has set up a new venture to likewise process and export smoked salmon from the Philippines.

In a disclosure to the Philippine Stock Exchange on Friday, Alliance Tuna said it had entered into a joint venture with Prime Foods to establish a new subsidiary to serve as an importer and processor of smoked salmon.

The new subsidiary named Big Glory Bay Salmon and Seafood Co. Inc. (BGB) will have its salmon processing facilities in General Santos City, adjacent to Alliance's tuna operations. It will be initially capitalized at P4 million. Once the construction of the civil structure starts next month, the capital will be increased to P47 million.

The new unit had been registered with the Securities and Exchange Commission and the Board of Investments as a new export producer of smoked (hot/cold) salmon and its by-products. The joint venture is expected to start operations in the last quarter of this year.

Under the Provisions of the Omnibus Investment Code of 1987, BGB will be entitled to an income tax holiday, initially of four years starting from July 2010.

Alliance Tuna will have a 50 percent plus one share stake in the salmon joint venture with the balance being held by Prime Foods New Zealand.