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China’s Government seeking to merge 28 sugar companies

The Chinese government wants to restructure the sugar industry in the Guangxi region to strengthen the sector and improve revenues for cane farmers. Last year, the region produced 5 million tonnes of sugar or 70% of sugar produced in China.

 

According to local press, Chinese government is encouraging 28 sugar companies in the Guangxi region to merge into six major groups. The government has yet to decide which companies merge with which. The six major groups include two state enterprises of the central government, two state enterprises of local government and two private companies ‒ one of which is Guangxi Nanning East Asia Sugar Group, a subsidiary of Mitr Phol Group.

According to Jarueg Greetawee, the managing director for China business at Mitr Phol Group , grouping these companies together will help them to have better business management and enhance their economies of scale. The planned grouping is expected to be concluded in 2020, he said.

The Chinese government expects each group to produce between 1.5 million and two million tons of sugar.

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