Tarlac Sugar Cane Central Azucarera de Tarlac, located in the Philippines, was incorporated in 1927 and renewed in 1976. It operates a sugar mill and refinery, distillery and carbon dioxide plants in Barrio San Miguel, Tarlac City. The sugar cane milled is sourced within the Tarlac district and nearby towns of Pampanga. The Company’s sugar mill and refinery have a capacity of 7,200 tons of cane and 8,000 50-kg bags per day respectively. The sugar cane is initially processed to produce sugar of which 31% represents the company’s mill share, 69% belongs to the planters. Most of the raw sugar produced is further processed in the refinery to produce refined sugar. For the refining process, tolling fees are collected from customers’ upon withdrawal of refined sugar from the company’s warehouse. In addition to raw and refined sugar, the mill and refinery produces molasses, a by- product. The molasses produced in the mill is likewise shared between the mill and the planter using the same sharing ratio while the refinery’s molasses production is solely owned by the refinery. The mill’s raw sugar sales and the refinery’s tolling fees represent about 58% and 23% respectively, of the Company’s total operating revenue for the last three years. The raw and refined sugar produced is generally sold to industrial users through traders. The company normally operates for about 5 to 6 months and the refinery, about 8 to 9 months. Tarlac is a loyal customer with an inventory of 26 centrifugals that are 100% Western States machines. CHAPTER 14