Taiwan Sugar Corp (Taisugar, 台糖), the state-run sugar processor, yesterday said it plans to shut down four of its seven sugar mills and will reduce its annual production from 172,000 tonnes to 75,000 tonnes by 2005.
Though Taisugar is expected to incur a deficit of NT$1.9 billion (US$55.88 million) from its sugar refining business alone for 2002, a deficit it had forecast in August, operations at its sugar refinery will continue, company president Ray Dawn (董瑞斌) said.
Dawn made the remarks at a press conference yesterday on the company's sugar business plans for the future. The company currently has assets worth NT$78.2 billion and 5,504 employees.
According to Dawn, since the company started shrinking its staff through a combination of firings and privileged voluntary retirements last year, 1,449 employees have left the company as of Sept. 30. The company plans to cut the work force to 1,062 as of July, 2005.
Taisugar reported NT$1.9 billion (US$55 million) in losses last year, with NT$32.5 billion in sales. The company is targeting NT$940 million in profits this year, through cutting personnel costs and selling Taisugar-owned lands and properties, Dawn said.
For the first nine months of the year, the company forecasts NT$2.34 billion in profits, with NT$22.7 billion in sales, he added.
As part of the company's privatization work, Taisugar also plans to further consolidate its operation into three or five business units by the end of next year -- focusing mainly on biotechnology, food processing, land management as well as retail and distribution businesses, Dawn said.
However, Taisugar's privatization work has been dragged down by the dispute between the company and some private shareholders who own 3.42 percent of the company.
While the company wanted to buy out the shares at the current price of between NT$48 to NT$49 per share, some private investors -- who purchased the shares at prices as high as NT$300 -- refused to sell.
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