San Miguel said it will set up a plant that will take used plastic bottles and convert them into "food-grade packaging materials and containers."

The technology has been approved by US and European food and drug authorities, a company statement said, adding that the plant will be the first of its kind in Asia.

It will be set up in San Fernando town, north of Manila and will be operational by May 2004.

San Miguel uses plastic bottles for softdrinks and purified water.

TERRA.WIRE