Taisugar to fire half its workers

Taiwan Sugar Corp (Taisugar, 台糖), the nation's state-run sugar processor, said it will pare half its workforce of about 6000 because of a plan to shut its nine sugar mills starting next year to stem rising losses.

Three mills will be shut next year, and about 16,000 farms will eventually lose sugarcane sales as Taisugar stops crushing the crop after entry into the WTO on Jan. 1 forced the nation to slash import tariffs. That's expected to spur imports of cheaper sugar from overseas.

Taiwan's government estimates admission to the WTO may cost the nation 22,500 farm jobs as it cuts import tariffs on agricultural commodities.

Taiwan, which consumes about 500,000 tonnes of sugar a year, will "in future depend totally on imports," said Jack Sung, head of Taisugar's sugar sales division. "We would only be in refining, and exit the traditional sugar cane growing business."

Taisugar, which had a loss of NT$1.9 billion (US$55 million) on sales of NT$32.5 billion last year, will retain its capacity to refine about 300,000 tonnes of raw sugar a year. The company is using only a fifth of its sugar crushing capacity, Sung said.