MANILA, Philippines - Listed sugar miller Victorias Milling Co. Inc. (VMC) is venturing into power generation.
In an exchange filing yesterday, the company said its Board of Directors had authorized the creation of a wholly-owned unit with an authorized capital stock of P500 million to undertake power projects.
The company did not provide any more details on the power venture.
VMC is engaged in integrated raw and refined sugar manufacturing. It’s plant facilities are located in Victorias City, Negros Occidental.
It has subsidiaries engaged in fish canning, real estate, sugar sacks manufacturing and packaging, and golf course and restaurant operations which include Victorias Foods Corp., Victorias Agricultural Land Corp., Canetown Development Corp., Victorias Golf and Country Club Inc., Victorias Quality Packaging Co. Inc., and Victorias Industrial Gases Corp.
The company has been paring down its debt to strengthen its balance sheet as it upgrades its production facilities in preparation for heightened competition when sugar tariffs across the Association of Southeast Asian Nations would be reduced to five percent this year.
It began to encounter financial difficulties in the mid 1990s due to failure to contain rising overhead costs against falling domestic sugar prices.
It was also unable to compete with new and expanded sugar mills and refineries.
The Securities and Exchange Commission approved its rehabilitation plan in 2000 which includes the continuing debt elimination.
In August, Lucio Tan-led LT Group Inc. (LTG) further increased its ownership in in VMC to 23.5 percent. VMC is also the primary sugar supplier to LTG’s liquor manufacturing unit Tanduay Distillery.