CAC is Top Sugar Miller for October-December

January 19, 1999 PSE CIRCULAR FOR BROKERS NO. 081-99 CAC is Top Sugar Miller for October-December Publicly-listed sugar corporation Central Azucarera de La Carlota emerged as the country's largest producer of raw sugar from the onset of crop year 1998-1999 until the first week of January. The company produced a total of 794,391 bags of raw sugar as it ground a total of 603,812 tons of sugar cane for the period. CAC has expanded grinding capacity to 10,500 tons cane per day as a result of an expansion and modernization program implemented by its parent company, the Central Azucarera Don Pedro group. CADP owns 49% of CAC after completing its acquisition of the Negros-based company last year, and has been managing it since early 1996. "The capital program is part of our total effort to improve the overall capability and global competitiveness of the CADP group in particular and Philippine sugar in general," said CAC chairman Pedro Roxas. He disclosed that capital investments in CAC's integrated milling and refining plant located in La Carlota City, Negros Occidental has reached about P770 million after the CADP group implemented its upgrading program. Last year, CAC put on line a state-of-the-art 200-ton bagasse-fired boiler outfitted with automated water scrubbers and reclaiming system which allowed it to decommission its old, low-capacity boilers. It also upgraded three Kawasaki boilers, while undertaking improvements on the cane handling and milling facility. LLpr For crop year 1997-98, CAC produced a total of 2.09 million bags of raw sugar and milled 1.21 million tons of sugar cane. Raw sugar production rose 9.4% from the previous the crop year's 1.91 million bags, while gross tonnage milled increased at a slower 5.1% from 1.15 million tons. "The higher increase in raw sugar production compared to grinding tonnage reflects the better operating efficiencies and productivity we have achieved in CAC," Roxas explained. He said that CADP and CAC commenced to consolidate operations last year after the Roxas group built up its equity ownership in the latter to better take advantage of opportunities and address problems. The company expects aggregate cane production to drop in Negros for the whole crop year 1998-99 as a result significant reduction in farm production due to the adverse effects of the El Nino . Despite this, CAC expects to mill more canes this year compared to last year, due to the increase in grinding rate of the plant.