Vinamilk gobbles up KSC to rename it Vietsugar
Vinamilk gobbles up KSC to rename it Vietsugar
Vinamilk has just acquired a 65 per cent stake of Khanh Hoa Sugar JSC and renamed it Vietsugar.
This company was established in 1989 with Dien Khanh sugarcane factory with the initial capacity of processing 100 tonnes of sugarcane per day. Subsequently, it was renamed Khanh Hoa Sugar JSC (KSC) in 1995.
On November 28, 2017, Vietnam Diary Products JSC (Vinamilk) launched Vietsugar after acquiring KSC to complete its materials supply chain.
On November 22 KSC tripled its charter capital, rising it from VND42.1 billion ($1.85 million) to VND120.3 billion ($5.3 million). Vinamilk holds 65 per cent of KSC’s share capital, equivalent to 7.82 million shares bought at VND127,878 ($5.62) per share. Accordingly, the company is valued at VND1.538 trillion ($67.6 million).
Vietsugar can now process 10,000 tonnes of sugarcane and refine 1,500 tonnes of raw sugar per day. This will rise to 15,000 tonnes of sugarcane and 2,000 tonnes of raw sugar per day.
Vietsugar products are processed directly from sugarcane by a new automated technology line. This production line was supplied by Honeywell Company from Singapore and aims to save energy and enhance production efficiency.
Additionally, the sugar sector is going to face many challenges after the ASEAN Trade in Goods Agreement (ATIGA) removes import duty from sugar imported from regional countries in 2018. Quotas will also be officially abolished early next year.
