Press Releases / News Updates
Roxas Group Builds Up Competitive Position
LISTED INVESTMENT AND MANAGEMENT COMPANY ROXAS HOLDINGS, INC. (RHI), which manages one of the country’s largest sugar manufacturing companies, announced its strategic agenda on Wednesday that will help place the group in a competitive advantage against less expensive sugar that will enter the country beginning 2010.
RHI Chairman and Chief Executive Officer Pedro Roxas said RHI is gearing up for the entry of less expensive sugar as a result of lower tariffs under the ASEAN Free Trade Agreement, which the Philippines signed in 1992.
“In anticipation of this cutthroat competition, we are positioning ourselves to continue building up scale to be more competitive and transforming from a commodity provider to a value-added entity,” Mr. Roxas added.
The agreement, which was signed by other members of the Association of Southeast Asian Nations (ASEAN), requires duties on goods, which includes sugar, to be cut to more than 5 percent by 2010.
Mr. Roxas explained RHI is laying the groundwork for diversifying its product mix by introducing new sugar and sugarcane-based solutions in the market.
He added the company also has plans to expand both its sugar and upcoming ethanol businesses in the region.
“This move, he said, would require strategic and financial partnerships with other industry investors,” Mr. Roxas furthered.
“We are currently in talks with some industry players – both local and foreign – to explore the possibility of teaming up with them for our regional play,” RHI President and Chief Operating Officer Francisco Del Rosario, Jr. disclosed.
“These moves go hand-in-hand with our venture into the ethanol industry and our capacity-building initiatives,” Mr. Del Rosario added.
RHI is the holding company of another listed firm CADP Group Corporation (CADPGC), the largest producer of raw sugar and the second largest refiner in the country.
Mr. Del Rosario was tasked to monitor the timely and efficient implementation of the major initiatives and programs of the Roxas Group including capacity building, ethanol business, cost reduction, product and market diversification and organizational development.
Last week, CADPGC announced its plans to build an ethanol fuel plant in Negros Occidental, which will be operational by November 2009, as well as its acquisition of a sugar mill and equipment from abroad to boost its sugar manufacturing capacity.
Refer to: Celest Jovenir Investor Relations and Corporate Communications Tel: (632) 810-8901 to 06 ext. 1811 Email: firstname.lastname@example.org