MANILA, Philippines -Listed sugar and ethanol producer Roxas Holdings Inc. (RHI) is divesting a mothballed mill operated by subsidiary Central Azucarera Don Pedro Inc. (Cadpi) in Batangas province.
RHI president and CEO Celso Dimarucut did not divulge details of the deal, such as the potential buyer, timeline and acquisition cost. He only said the Cadpi assets were classified as an “asset for sale.”
“Discussions are currently underway with a potential buyer for the sale of this equipment,” said Dimarucut during the company’s annual stockholders’ meeting held virtually on Wednesday.
RHI earlier disclosed the assets for sale represent Cadpi’s assets from its milling operations, including machinery and equipment amounting to P897.3 million.
“Hopefully, we’ll be able to announce soon the outcome of this discussion,” added Dimarucut.
Last December, RHI arrived at a decision to permanently cease the raw sugar milling operations of Cadpi situated in Nasugbu town beginning crop year 2022-2023 and terminate the subsidiary’s employees.
Dimarucut, in a letter addressed to Sugar Regulatory Administration (SRA) administrator David John Thaddeus Alba, said the firm “has been experiencing financial challenges within the current conditions affecting the sugar industry in the Batangas area.”
He cited the “significant decline of sugarcane supply” caused by various external factors, aggravated by Cadpi’s “aging and oversized mill equipment.”
In his response, Alba expressed concern for sugarcane planters since the closure was announced during the mid-milling season.
“In their behalf, may we therefore know if your company has any plans on helping your regular sugarcane planters regarding their plight,” Alba said.
SRA data showed Cadpi produced 41,682 metric tons of raw sugar in crop year 2021-2022, down by 31.31 percent.
Its output represents 31.24 percent of raw sugar produced in Luzon.
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