Latest Stories

Victorias Milling plans diversification


MANILA, Philippines—Sugar firm Victorias Milling Corp. plans to diversify into allied businesses to strengthen operations ahead of a low-tariff regime under the Asean Free Trade Area (Afta) by 2015.

Within the next two years, VMC may raise fresh funds to go into new ventures, first of which will be power co-generation, then bio-ethanol production and allied infrastructure like co-investing in a railroad system to transport sugarcane.

“The challenge is Afta, but we’re transforming VMC,” company chairman Wilson Young said in an interview at the sidelines of the company’s stockholders’ meeting last week.

VMC has obtained consent from its shareholders to amend its secondary purpose under the charter to allow the co-generation of electricity for its own use for lighting and other purposes. In addition to the leeway under its existing charter to go into manufacturing, agricultural, educational, mercantile, insurance, trading, real estate and fiduciary businesses, more amendments were made to include infrastructure, transportation, telecommunications, mining, water, power generation, recreation, financial or credit and consultancy.

In manufacturing, it was specified in the amendment that this would include but not be limited to ethanol and potable alcohol production, harnessing synergies from its sugar milling operations.

Young explained that the company was not planning to pursue all these activities, but only needed the flexibility. The amendments will be presented for approval by the Securities and Exchange Commission and creditor-banks.

“We definitely need new money,” Young said, when asked how new ventures would be funded. “We will study that; maybe in the next two years we can tap new loans again.”

Power co-generation could be prioritized, he said, because the feed-in-tariff (to encourage renewable energy) was already put in place by the government.

Reviving a railway system to transport sugarcane and passengers is also part of VMC’s plan for the future. The company earlier announced plans to spearhead a new railroad project in Negros Occidental to transport sugarcane and passengers. Such an infrastructure could reduce cost by about a third, Young said.

Follow Us

Follow us on Facebook Follow on Twitter Follow on Twitter

Recent Stories:

Complete stories on our Digital Edition newsstand for tablets, netbooks and mobile phones; 14-issue free trial. About to step out? Get breaking alerts on your mobile.phone. Text ON INQ BREAKING to 4467, for Globe, Smart and Sun subscribers in the Philippines.

Tags: Afta , Business , diversification , sugar , Victorias Milling Corp.

  • http://pulse.yahoo.com/_AYITA5V33GYZSLC3G37UCVNTKA Ben

    In doing the diversification…may we humbly ask if it is not too much to ask to at least take good care of your sugar farmers? Raise their per day salary, give them benefits and educational plans for their children?  I do hope you succeed but shed off some corporate greediness especially of the shareholders…take good care of your workers please?

    • mapicchu

       you obviously are not aware of vmc’s operations.

      • http://pulse.yahoo.com/_AYITA5V33GYZSLC3G37UCVNTKA Ben

        ..Obviously i am not, but I would rather be wrong than correct since its the people who will benefit from corportate wealth sharing with their employed lot… as you know before  the time magazine reported that Negros island rich in sugar cane malnutrition abound, sugar cane workers earn the cost of one Mc Donald hamburger before, when the sugar cane prices collapsed due to massive importation and dwindling prices of sugar communist guerillas were able to recruit a lot of them. Hence the Ethanol industry was born to absorb excess production that can not be exported or due to overseas prices drop and still create wealth for them, Victoria milling was previously rehabilitated by the government.

      • mapicchu

        Ok lang friend..just wanted to correct your impression…vmc does not have sugar cane farmers in their payroll…they just mill canes brought to their facility by various planters

  • Isagani Gatmaitan

    Parang kahapon lang… when they were deeply in debt…. due to undue diversification… and now…

  • jurbinsky77

    Sugar cane by-products like ethanol or biomass power plant projects are pretty enticing.
    In the US, gasoline has 10% ethanol. The Philippines should enact inclusion of ethanol as a law. 

    Mountain sides should be planted with cassava and corn and sweet potato. In between coconut plants should be planted with vegetables and fruits like passion fruit, pineapple, coffee, jackfruit and eggplants, etc. All sugar and coconut land dwellers should be given hoes, rakes, trowels, spades by the local government or by the DA so that food production starts from those idle areas.

    • Pong_Je

      I think we have already a law on mix of ethanol on gasoline.

    • http://pulse.yahoo.com/_V6JTYBZXUSXIDCD67ACZK7NUKM Joseph

      Our gasoline already has the 10%.

Copyright © 2014, .
To subscribe to the Philippine Daily Inquirer newspaper in the Philippines, call +63 2 896-6000 for Metro Manila and Metro Cebu or email your subscription request here.
Factual errors? Contact the Philippine Daily Inquirer's day desk. Believe this article violates journalistic ethics? Contact the Inquirer's Reader's Advocate. Or write The Readers' Advocate:
c/o Philippine Daily Inquirer Chino Roces Avenue corner Yague and Mascardo Streets, Makati City, Metro Manila, Philippines Or fax nos. +63 2 8974793 to 94


  • Aquino: ‘Doubting Thomases’ now contributing to PH recovery
  • Fire engulfs apartments in Sampaloc
  • Messy warehouse belongs to Unicef, WFP, says Soliman
  • Suspected Abu Sayyaf rebels release hostage
  • New meaning of Easter in Samar
  • Sports

  • Warriors beat Clippers in playoff opener
  • Pacquiao top Mayweather contender
  • Rain or Shine, Ginebra clash for No. 6 spot
  • Ateneo eyes quarterfinal spot vs Benilde
  • Style contrast marks OneFC ‘Rise of Heroes’
  • Lifestyle

  • Noli Yamsuan, Cardinal Sin’s ‘official’ photographer: ‘I could smell the aftershave lotion of the Pope’
  • Simplifying and lightening life
  • Where to go for Easter night-out
  • Joe de Venecia visits the Queen Mother of Cambodia
  • Fashionistas flock to designer’s wedding
  • Entertainment

  • Show-biz celebrities’ other choices of summer getaway
  • Why ‘Noah’ can’t dock his ark at Philippine theaters
  • Acclaimed artist goes wild while on holiday
  • Believing in this mermaid
  • Missing Xian
  • Business

  • Top-selling insurance agent opens her dream café
  • Connecting and transacting with one another
  • Building wealth for health
  • Why Mandaue Foam buys, rather than rents, space
  • A workplace of new possibilities
  • Technology

  • Nasa’s moon-orbiting robot crashes down
  • Netizens pay respects to Gabriel Garcia Marquez
  • Nokia recalls 30,000 chargers for Lumia 2520 tablet
  • Facebook rolls out ‘nearby friends’ feature
  • Netizens seethe over Aquino’s ‘sacrifice’ message
  • Opinion

  • Epiphany
  • Unpaid creditor vs distressed debtor
  • Moving on
  • From culinary desert to paradise
  • Response to China: ‘Usjaphil’
  • Global Nation

  • Asia seeks Obama’s assurance in territorial spats
  • Cesar Chavez movie sparks memories of Fil-Am labor leaders
  • Filipinos in US poised for success
  • Visas for priests and other faith leaders
  • DOH to continue tracking co-passengers of OFW infected with MERS virus
  • Marketplace