Del Monte Arabia, one of the world's leading producers of prepared fruit and vegetables, is investing $250 million in a banana and pineapple plantation on Palawan island in the Philippines, a local government official said on Tuesday.

Jose Alvarez, the governor of Palawan, said the investment deal would be sealed through a memorandum of understanding which he will sign with the company on July 28.

The plantation will cover a total 6,000 hectares in three towns in the southernmost part of Palawan and the produce from the plantation will be exported to Asia, North Asia and the Middle East, Alvarez said.

Production is expected to begin in two years, he added.

The company could not be immediately reached for comment. – Reuters