Flender/Flender Gear Units/Helical gear Reduction Boxes H4
EXECUTIVE SUMMARY The Victoria de Julio sugar company is one of 3 state-owned enterprises assigned to the Nicaraguan privatization corporation,

CORNAP, for privatization. This report, prepared by the Price Waterhouse International Privatization group (PW/IPG), includes diagnosis of Victoria de Julio'

operations, an estimate of the value of the company, and recommended strategy for privatization. . Diagnosis of Victoria de Julio

Operations 1. Company and Industry Description Construction of Ingenio Victoria de Julio (IVJ) began in 1 under the Sandinista government

and the mill began operations in 1. The property which is now part of IVJ was confiscated under the agrarian reform from the Somoza family and number of other private land owners in the area. The Victoria de Julio sugar operation is located at Km. 3 1/2 of the Tipitapa- Malacatoya highway, approximately 1/2 hour from Managua (see map). The primary activities of the company are sugar cane cultivation, sugar processing, and energy generation for internal consumption. IVJ was originally planned to have 2,0 manzanas under cultivation, however, at the present time the project has approximately 1,0 manzanas under cultivation (including land cultivated by colonos). Completion of the IVJ project is critical to achieving full utilization of the factory and improved financial performance. The land development required to complete the project is presented on the following page. Victoria de Julio is one of seven sugar mills operating in Nicaragua. Its annual sugar production represents approximately 1% of domestic production. The state sugar company, CONAZUCAR, sells and distributes all national output, oversees the budgets of the mills, and provides financing for the mills. Approximately 5% of 1/9 production was sold to the domestic market at government set price of $1.2/quintal. Approximately 1% of output was sold under the United States quota program at price of $1.0/quintal. The remain