Bogo Medellin earmarks P57.8M for capex this year
Bogo Medellin Milling Company Inc. is setting aside P57.8 million this year for its capital expenditure to improve its operations and comply with government regulations.
In a disclosure to the stock exchange, Bogo Medellin Milling said the capital expenditure will be financed from company funds.
The biggest investment will be on a set of pinion and bull gear with shaft which will cost P10 million followed by one crawler crane with a capacity of 50 tons at P6.5 million. It will also be spending P3 million each on a CFM nash vacuum pump and one set mill high speed reducer.
The company expects to produce 540,000 50-kilogram bags this year, four percent higher than a year ago.
The company expects favorable weather conditions to result in steady cane deliveries and efficient operations as it continues with process improvements and effective cost controls.
“The overall financial result for 2016-2017 is expected to be favorable,” the company said.