B2-DH13A A n A n A n A Gl d Informati Bevel-helical speed reduction gearboxes B2

Flender/Flender Gear Units/Bevel-helical speed reduction gearboxes B2

n, and Javier Guerra sugar companies was transferred in May 1 from CONAZUCAR to four-person administrative boards established at the four mills. Persons familiar will the Nicaraguan sugar industry expect the restructured industry to operate in cartel-like manner. board of directors would be established at CANSA. The board is expected to be made up of the owners of the sugar mills and representatives of the pertinent regulatory bodies. The primary responsibilities of the board would be to allocate export quotas, discuss pricing issues, self-police the industry, arbitrate disputes, repreisent the industry, and conduct other similar tasks. . Competition The following is brief overview of the strengths and weaknesses of the seven sugar companies operating in the Nicaraguan sugar industry, obtained from interviews with persons familiar with the sugar mills. Historical operating statistics for the seven sugar mills are included in Appendix . Ill -8 1. San Antonio San Antonio is the largest mill in the country, accounting for approximately 4% of production. It is owned by one of the strongest economic groups of the country and has reputation for strong management. It has the only sugar refinery in the country aril is currently doubling refinery capacity. The ownership group also controls Flor de Calia the largest distributor of rum in Nicaragua. However, the company was not able to reduce personnel in recent years to the extent accomplished by other sugar mills. 2. Victoria de Julio IVJ is the second largest mill in Nicaragua in the sugar industry, where economies of scale can be important. It is the most modern and technologically advanced mill in the country, built in 1. industrial yield is high at 2.2 QQ/. The factory is located in the center of the cane fields resulting in low cane transportation costs. Energy co-generation could be an important source of profits if the project is completed. Despite its many advantages, the potential a