16 June 1998
Little sweetness for Tate & Lyle in China
TATE & LYLE is seeking to stem losses at its sugar mills in southern China.
The mills have become increasingly squeezed by the anomaly of Chinas price-control system. The cost of sugar cane, which is set by the Government, has risen sharply, while the price of ex-factory sugar, which is determined by market forces, has crumbled.
Now both plants have been informed that Tate & Lyle will not bail out any future losses. The growth of sugar consumption in China has been slower than expected.
- Financial Times 16/06/98 page 34