Universal Robina Corp. (PSE: URC) has reached an agreement with Roxas Holdings Inc. (RHI, PSE: ROX) to acquire the milling and refining assets of its wholly-owned subsidiary Central Azucarera Don Pedro Inc. (CADPI) and land owned by RHI, on which the milling and refining assets are situated in Batangas.
Under the terms of the sale transaction, URC will acquire all buildings, improvements, machineries and equipment, laboratory equipment, spare parts and transportation equipment, as well as the land on which the aforementioned assets of RHI and CADPI are located, including any other parcels of land that are necessary for the continuing operations of the refinery and milling plant located at Brgy. Lumbangan, Nasugbu, Batangas.
The transaction is currently still under review of the Philippine Competition Commission (PCC).
“Together with URC-Balayan, we believe that URC’s acquisition of the milling and refining assets of CADPI will create synergies in the sugar industry in Batangas that will benefit all stakeholders—sugarcane farmers, sugarcane workers and the communities,” said URC Chairman Lance Y. Gokongwei.
Total raw sugar production in Batangas for crop year 2017-2018 is around 2,600,000 million 50-kg bags, or roughly 6% of total annual national sugar production.
URC, through its Sugar and Renewables Division, operates six (6) sugar cane mills nationwide, producing raw sugar, refined sugar and molasses. It also operates a 20-megawatt cogeneration plant, a 100,000 liters per day fuel ethanol plant and a 40 tons per day liquid CO2 plant.
“URC strongly believes in the long-term viability of the sugar cane industry in the Philippines and we shall always continue supporting the sugarcane farmers and workers,” added Gokongwei.
Universal Robina Corp. (URC) was founded in 1954 when John Gokongwei Jr. established Universal Corn Products Inc., a cornstarch manufacturing plant in Pasig.
URC operates its food business through operating divisions and wholly-owned or majority-owned subsidiaries that are organized into three core business segments, namely, branded consumer foods (BCF), agro-industrial products and commodity food products – flour milling and sugar milling and refining.
Under its Sugar and Renewables Division, it operates six (6) sugar cane mills: URC – Passi in Iloilo, URC – Tolong and URC – Ursumco in Negros Oriental, URC –Sonedco in Negros Occidental, URC – Carsumco in Cagayan, and URC – Balayan in Batangas, three (3) of which are integrated with sugar refining facilities. URC also ventured in the renewables business for sustainability through a cogeneration plant in Kabankalan, Negros Occidental and distillery and CO2 recovery and liquefaction plants in Bais, Negros Oriental.
URC is listed on the Philippine Stock Exchange (PSE: URC). Further information can be obtained by visiting the web at www.urc.com.ph.