Jul 2006 Financial News

Government to sell NFM share

Jul 28, 2006

Government is looking to further divest National Flour Mills (NFM). Christine Sahadeo, Minister in the Ministry of Finance, on Tuesday said, “NFM no longer carries the same strategic priority that it once did. It is quite possibly a candidate for further divestment of Government shareholding on the domestic market, although such a decision has not yet been taken.”

Speaking at NFM’s commissioning of its new $94 million mill at Wrightson Road, Port-of-Spain, Sahadeo said there have been a number of expressions of interest from the private sector to form strategic alliances with NFM.

“Whatever the arrangement may be, there will be no fire sale of NFM’s assets,” she said.

While stating that NFM has more than $500 million in tangible assets, Sahadeo said: “NFM is a prime target for acquisition by the private sector. But be advised, this is not an advertisement to attract the highest bidder.”

She said any divestment of the State’s shareholding in NFM will be guided by the partnership being beneficial to the country, to its shareholders, the employees and the company.

NFM acting chairman, Kamal Mankee, said NFM is in the process of implementing a voluntary separation employment package operation at significant cost to the company.

“We have developed and commenced implementation of a new business plan that would guide the company over the next five years,” Mankee said.

“And equally important, we are putting new management in place.”

Stating that the mill was completed within schedule and within budget, Mankee said the new plant was designed to mill 400 metric tonnes of wheat daily at a minimum extraction rate of 76 per cent, and is expected to produce at least 304 metric tonnes of flour per day.

Mankee said NFM has achieved an extraction rate of 78 per cent, higher than what the mill was programmed to do, and is producing 312 metric tonnes of flour daily.

Mankee said the mill represents cutting-edge technology, which seeks to expand product variety, generate higher yields and greater efficiency, increase flexibility reduce cost and deliver high quality products to the marketplace.


Sandra Chouthi
The Trinidad Guardian
July 27, 2006

http://www.guardian.co.tt/archives/2006-07-27/business1.html