Nestlé Philippines targets to use 100% recyclable packaging by 2025

April 22, 2019 | 12:03 am

WHILE it is working towards making the packaging of its products 100% recyclable in six years, Nestlé Philippines needs support from the government and other stakeholders on recycling efforts.

Kais Marzouki, the chairman and chief executive officer of Nestlé Philippines, said in a recent media briefing that the company has made 75% of their packaging recyclable.

“Plastic is a big topic in the Philippines. We are committed towards the goal that our company has set out, which is to make sure all our packaging is recyclable by 2025,” he said.

“But truth is already today, 75% of our packaging is recyclable. It doesn’t mean that it’s being recycled. So we need, and we are working with other companies and with government, to try to create a circular economy,” he added.

Nestlé Philippines handles several food brands in the country that are sold by retail: Nescafe, Coffee-mate, Milo, Nido, Bear Brand, Nestea, and Chuckie, among others.

Earlier this month, World Bank Acting Director for the Philippines Agata E. Pawlowska said in a Marine Plastics Conference that the country now has the highest rate of mismanaged plastics in the world.

“There is a lack of statistics on the amount of plastic in the Philippine waters. What is known is that the amount of mismanaged plastic waste is continuously increasing, and that the plastic crisis requires urgent action,” she said.

In December, House Bill No. 8692 was filed seeking a nationwide ban on single-use plastic products such as grocery bags, food packaging, water bottles, straws, cups and sachets. It is still on first reading at the House of Representatives.

Nestlé Philippines’ ready-to-drink business unit manager Veronica Caron V. Cruz said the carton boxes used for the Chuckie packaging is being regularly collected to be recycled as paper.

“Actually the Chuckie packaging is recyclable. So what we do is right now we collect in specific areas the used beverage cartons… And we have a mill in Bulacan. We work with Tetra Pak, we have a paper mill and we grind it, and we get the paper. In fact now, in Chuckie promo packs, if you see the sleeves that we have, it’s recycled paper already,” she said.

She added that this year is the first time Nestlé Philippines is using recycled paper for its promotion packs. The company intends to continue finding ways to recycle the waste from product packaging.

“The goal is to get more people to bring in the used box cartons, used beverage cartons into the mill so we get to recycle more. And what we do is really use it back, then it becomes a complete cycle,” Ms. Cruz added. — Denise A. Valdez

Volvo gets set for an electric future with new hybrid powertrains

April 22, 2019 | 12:03 am

By Manny N. de los Reyes

VOLVO HAS taken a major step towards its electric future with the release of new or upgraded electrified powertrain options, which will be made available across its entire global range of sedans and SUVs.

The company has upgraded its existing T8 and T6 Twin Engine plug-in hybrid powertrains, while confirming that plug-in options will now be available on every model it produces. Plug-in technology allows hybrids to travel longer distances on pure electric mode compared to traditional hybrids that use its internal combustion engine for battery charging.

Meanwhile, a T8 Twin Engine S90 Plug-in Hybrid has just been made available in the Philippines. “This is our first step towards locally implementing Volvo’s global vision to have half of our global sales comprised of fully electric cars. Safer for the environment, better for everyone on the planet,” shared Volvo Philippines Marketing Head Christopher L. Yu.

Volvo will introduce a range of hybrids in the coming months, starting with diesel and petrol versions on the S90 flagship sedan and the XC90 and XC60 SUVs.

These hybrids will, for the first time, offer customers Volvo’s advanced kinetic energy recovery braking system. This system is coupled with its existing internal combustion engines to create a new integrated electrified powertrain, under its new ‘B’ badge.

This new powertrain, electrified via brake-by-wire energy recovery, offers drivers up to 15% fuel savings and emission reductions in real world driving.

The new brake-by-wire system interacts with the energy recovery system and reduces fuel consumption and emissions by recovering kinetic energy under braking.

Volvo has upgraded its production capacity so that up to 25% of total production can be Twin Engine plug-in hybrid cars. It also expects its new ‘B’ badged powertrains to gradually become the new standard, moving it closer to its goal that by the middle of the next decade, all of its cars will be electrified.

There will be new and upgraded powertrains introduced on Volvo’s larger Scalable Product Architecture (SPA)-based cars.

The upgraded T8 Twin Engine plug-in hybrid with up to 420 horsepower features a new battery and brake-by-wire advanced battery charging. The range of the T8 powertrain has increased by around 15% and this powertrain is available on all 90 and 60 Series cars.

An upgraded version of the smaller capacity T6 Twin Engine plug-in hybrid is also combined with the new battery and brake-by- wire technology. This powertrain also offers an approximate 15% range increase and is available on the V60 estate and S60 sedan.

The XC90 will be available with a B5-badged hybrid petrol or diesel variant, as well as a B6-badged petrol hybrid.

On the XC60, customers will be able to choose between a B5 hybrid petrol or diesel variant, a B4 diesel hybrid as well as a B6 petrol hybrid. The B5 petrol will be available with front-wheel drive or all-wheel drive.

The company’s smaller Compact Modular Architecture-based XC40 SUV will also receive a new electrified option, in the form of a T5 Twin Engine petrol-plug-in hybrid. A second T4 Twin Engine plug-in hybrid option will follow later.

USDA sees strong PHL soybean meal market due to growing demand for animal feed

April 22, 2019 | 12:03 am

THE Philippines was the top export destination for soybean cake and meal from the United States in the week to April 11, according to the United States Department of Agriculture (USDA), which sees a burgeoning market due to the growth in meat consumption and the consequent need for animal feed.

The USDA weekly export sales report noted that soybean cake and meal exports were up 57% from the previous week, and up 63% from the prior four weeks’ average.

“The destinations were primarily to the Philippines (75,600 MT), Mexico (54,400 MT), South Korea (52,500 MT), Colombia (47,700 MT), and the Dominican Republic (35,800 MT),” the agency said in the report.

Soybean meal (SBM) is primarily used to feed farm animals.

US Customs data show that SBM imports by the Philippines from th US totaled $888 million in 2018, making it the largest market for US SBM. The Global Trade Atlas estimates that the US accounts for 84% of the Philippines’ SBM imports.

The USDA said in its Global Agricultural Information Network (GAIN) report that demand for SBM in the Philippines is expected to increase to 3.15 million tons in milling year (MY) 2019-2020 “as local livestock and poultry raisers capitalize on the growing consumption of meat and meat products, driven by an expanding economy and rising incomes.”

According to data from the Philippine Statistics Authority (PSA), the economy expanded by 6.1% in the fourth quarter of 2018, bringing 2018 Gross Domestic Product (GDP) growth to 6.2%. At the beginning of 2019, the government said that it is keeping its 7-8% growth target for the year.

“Next to rice, which accounts for over a fourth of total agricultural output, hog and chicken production contributed the most to Philippine agricultural output in 2018 with shares of 15% and 9%, respectively. Both industries continue to consolidate and modernize,” the USDA said.

Specifically, it noted that livestock grew by 1.9%, year-on-year, with hog production growing by 2.4%, while poultry output grew by 5.8%, year-on-year, with chicken production expanding by 5.2%.

“Hog feeds account for an estimated 60% of overall feed production; poultry feeds are roughly 25%, and aquaculture and other animal feeds comprise 15%,” it said.

The USDA said that domestic SBM production is still insignificant and the industry is very much dependent on imports, and that it expects no change in SBM output from MY 2019-2020.

Citing the 2019 Alltech Global Feed Survey, the Philippines together with Indonesia, Vietnam, and Thailand, account for 93% of the feed production in Southeast Asia, but the region’s feed output accounts for only 20% of Asia-Pacific production. — Vincent Mariel P. Galang

Yields climb on easing bets ahead of break

April 22, 2019 | 12:02 am

YIELDS ON government securities (GS) rose slightly last week amid expectations of monetary policy easing and continued global market correction as well as the holiday-shortened trading week.

On average, debt yields — which move opposite to prices — inched up by 4.1 basis points (bp) week on week, the PHP Bloomberg Valuation Service Reference Rates as of April 17 published on the Philippine Dealing System’s website showed.

Michael L. Ricafort, economist at Rizal Commercial Banking Corp. (RCBC), said in an email that yields become “less inverted” after declines in short-term interest rates and the continuous “healthy” upward correction in long-term tenors following bigger declines last month.

“The one-month and three-month tenors were again slightly lower by -0.04 week-on-week after recent hints about possible monetary policy easing as early as the next monetary policy meeting on May 9, 2019 amid easing inflation trend,” said Mr. Ricafort.

The Bangko Sentral ng Pilipinas’ Monetary Board will hold its third policy review for this year on May 9 and might consider a cut in benchmark interest rates.

Mr. Ricafort added that “government bond yields in the US and in other developed countries mostly continued to correct higher recently…after global crude oil prices lingered at new 5-month highs on reduced output by OPEC (Organization of Petroleum Exporting Countries) and non-OPEC member countries as well as possible full enforcement on the US-led sanctions on Iranian oil exports by May 2019, and partly after recent comments from some Fed officials that fed fund rates may remain unchanged until the fall of 2020.”

For his part, Nicholas Antonio T. Mapa, senior economist at ING Bank N.V.’s Manila branch, said last week’s trading was “lackluster,” with most market participants likely out for the holidays.

“Most dealers were generally trimming positions with two days off,” Mr. Mapa said in an email.

At the secondary market on Wednesday, at the short end, the 182- and 364-day Treasury bills (T-bill) climbed by 0.8 bp and 1.5 bps to yield 5.962% and 6.102%, respectively, while the rate of the 91-day T-bill fell by 3.6 bps to 5.691%.

At the belly of the curve, rates increased across the board. The seven-year Treasury bond (T-bond) went up by 11.7 bps to yield 5.982%, followed by the five-year T-bond which saw its rate climb 8.3 bps to 5.909%. The two-, three- and four-year debt papers gained 4 bps (5.971%), 4.4 bps (5.915%) and 6.1 bps (5.897%), respectively.

“The 7-year to 9-year benchmark interest rates posted the biggest weekly increase of +0.12 — near one-month highs; but still among 10-month lows — partly due to higher global oil prices hovering among 5-month highs that led to higher local fuel pump prices, possible increase in electricity rates amid peak electricity demand…[and the] El Niño drought that could lead to some increase in agricultural prices,” noted RCBC’s Mr. Ricafort.

“Similarly, on external factors, the 10-year US government bond yield corrected higher recently to 2.60%, near one-month highs…, up from the low of 2.34% on March 28, 2019.”

At the long end, the 10- and 20-year T-bonds saw their rates go up by 11.0 bps (6.065%) and 2.6 bps (6.051%), respectively. The 25-year bond fell by 2.2 bps to yield 6.18% from a week ago.

Going forward, Mr. Ricafort expects short-term yields to continue their recent declining trend amid possible monetary easing by way of a cut in policy rates.

ING’s Mr. Mapa said investors are also staying “defensive” ahead of the 20-year T-bond auction this week. — Lourdes O. Pilar

Marvel and adidas collaborate on heroic footwear

April 22, 2019 | 12:02 am

IN TIME for the cinema release this week of the much-awaited movie Avengers: End Game, adidas Basketball and Marvel announced a collaboration for a new footwear collection.

The adidas/Marvel “Heroes Among US” collection boasts of five new shoe designs which the two groups tout as pairing the unique ability of National Basketball Association (NBA) and Women’s NBA athletes James Harden, Damian Lillard, Candace Parker, John Wall, and Tracy McGrady with the unmistakable flair of iconic Marvel characters Iron Man, Black Panther, Captain Marvel, Captain America and Nick Fury.

In the Philippines, however, only Dame 5 and N3XT L3V3L will be available beginning April 24 at select adidas Philippines store.

The Dame 5 is available for P6,500 while the N3XT L3V3L is priced at P9,000.

For more information, visit https://www.adidas.com/us/heroes_among_us — Michael Angelo S. Murillo

Pesos and sense: Toyota Vios 1.3 E

April 22, 2019 | 12:02 am

By Ulysses Ang

IT’S HARD to get excited about driving the Toyota Vios — it’s the quintessential commuter car, after all. However, there’s also no doubting its contribution to Toyota Motor Philippines’ bottom line. And among all the Vios variants, it’s the 1.3-liter that’s most important. Therefore, it’s time to cast all prejudice aside and find out if the latest Vios is all it’s cracked up to be.

Let’s tackle the most obvious thing about the car: the styling. Toyota officially refers to this as the “fourth-generation model,” but it carries over the same platform and even hardpoints as the previous one; thus, it’s probably closer to being Version 3.99 than Version 4.0. Still, kudos to Toyota for coming up with a fancy new packaging with the same Vios experience.

Of course, taste is entirely subjective. The front clip looks over-styled, toned down slightly because of the Prime variant’s full aero kit that adds some contours to the predominantly jellybean shape.

For all of the Vios’ highly stylized front end, inside it remains a pretty somber affair. Yet, what it lacks in sexiness, it delivers in quality. The materials are typical Toyota — crisp and sturdy; while the build quality is pretty convincing for its class.

Ergonomically, it’s pretty much a facsimile of the third-generation model and for that, it’s comfortable. The basic layout remains the same as before and all the controls, stalks, and buttons are clearly marked and chunky enough to be operated by feel. Seating comfort is also solid as is the visibility. The Vios is one easy car to place on the road, even without proximity sensors or cameras.

Keeping the same wheelbase and overall interior packaging as before, the Vios pretty much retains its interior space vis-à-vis its predecessor. Space, front or back, is quite generous.

Under the hood, the Vios 1.3 E Prime offers a respectable 98 horsepower and 123 Nm of torque. It’s a carryover engine from the previous model and the performance remains more of a relaxed than spirited affair. The initial pickup is good up to around 3,000 rpm making it perfect for the city commute. There’s no doubting that this is the quietest car in its class.

The accompanying CVT is also tuned for sensible driving, too. Gently tapping the accelerator keeps the revs down and the fuel efficiency reasonably high. With no changeable driving modes though, pressing down on the gas confuses the transmission easily and always feels like it’s a step behind. It will let the engine spin for a split-second before dropping the revs as it gets into rhythm. Paddle shifters or a manual override would help.

Like its powertrain, the Vios is made to be more safe and secure rather than sporty and spirited. Quietness aside, it’s extremely pliant and capable whatever the road surface. The steering is well-balanced, making it easy to drive and stable on the highways. Additionally, the well-damped suspension helps it absorb the heaviest road cuts and cracks easily. On the twisty bits, it tends to understeer more, but remains obedient. Plus, compared to other subcompacts, there’s an unmatched feeling of heft and solidity. No less than seven air bags, ABS with EBD, and Vehicle Stability Control all come as standard equipment.

Those looking for a fun, maybe slightly naughty car might “pass” on the 2019 Vios. However, for everyone else, it’s a solid decision. The latest version tries hard to look snazzier, but in the end, it’s the same no-nonsense car underneath. Toyota says most buyers choose this car for its design, but realistically, it’s because it’s safe, efficient, easy-to-drive, and comfortable. Those aren’t exactly poster-worthy marketing blurbs, but it’s what made the best-selling Vios what it is now.

Investor says it repaid P1.2B in Zamcelco loans

April 22, 2019 | 12:02 am

UP to P1.2 billion of the loans incurred by Zamboanga City’s electric cooperative have been repaid so far by its investor-manager contractor, which is trying to make ends meet to stretch its capital infusion in the ailing power distribution utility.

The financial update comes months after the joint venture between Crown Investments Holdings, Inc. and Desco, Inc. won the right to manage and operate Zamboanga City Electric Cooperative, Inc. (Zamcelco) in a P2.5-billion bid to take over the city’s debt-ridden distribution utility.

Joseph Omar A. Castillo, lawyer of the joint venture and the authorized official to speak on behalf of the contractor, said the joint venture had completed a financial and technical audit of Zamcelco.

“As part of technical audit, we’ve learned that simple maintenance protocol was not followed. We didn’t expect the poor state of these facilities,” he told reporters last week.

His comments come as the Energy Regulatory Commission (ERC) holds a hearing this week on the petition by one of Zamcelco’s creditors, which claims to have not been paid of millions of pesos in energy sales.

Ahead of the hearing, both parties have scheduled a press briefing this week to give their side on the pending issues.

Mr. Castillo declined to comment on the matter but he said the joint venture partners were aiming to solve the financial woes of the electric cooperative, which had debts of at least P2 billion to its power suppliers when the contractor announced its takeover in September last year.

“In just less than four months, the new Zamcelco has installed brand new 5,855 meters, [and] brought in two transformers of 10 MVA (megavolt ampere) and 20 MVA to replace overloaded transformers in the Cabatangan and Ayala substations,” he said.

Mr. Castillo said the contractor had also fired up 22-megavolt of generator sets as emergency power to address voltage issues.

He said the power distributor had been debt-ridden since 2013, leading to the auction of an investor-management contract to help get it out of its financial problems and reduce its high systems loss rate of more than 23%.

“When the joint venture [partners] took over on Jan. 3, 2019, they have since performed a financial audit, technical audit, including reviewing all power supply contracts, and checked them against invoices before paying their obligations,” he said.

Mr. Castillo said the debt payments included those owed to state agencies National Electrification Administration (NEA) and Power Sector Assets and Liabilities Management Corp. (PSALM). He said the rest of the P2.5-billion bid amount that was not used to pay debts would be reserved for working capital.

“So far, the technical team of the JV (joint venture) has identified over P670 million of capital requirements much needed in replacement of key facilities and rehabilitation of substations,” he said. — Victor V. Saulon

US wins WTO ruling against China grain import quotas

April 22, 2019 | 12:02 am

GENEVA — The United States won a World Trade Organization (WTO) ruling on Thursday against China’s use of tariff-rate quotas for rice, wheat and corn, which it successfully argued limited market access for U.S. grain exports.

The case, lodged by the Obama administration in late 2016, marked the second U.S. victory in as many months. It came amid U.S.-China trade talks and on the heels of Washington clinching a WTO ruling on China’s price support for grains in March.

A WTO dispute panel ruled on Thursday that under the terms of its 2001 WTO accession, China’s administration of the tariff rate quotas (TRQs) as a whole violated its obligation to administer them on a “transparent, predictable and fair basis.”

TRQs are two-level tariffs, with a limited volume of imports allowed at the lower ‘in-quota’ tariff and subsequent imports charged an “out-of-quota” tariff, which is usually much higher.

The administration of state trading enterprises and non-state enterprises’ portions of TRQs are inconsistent with WTO rules, the panel said.

Australia, Brazil, India, and the European Union were among those reserving their rights in the dispute brought by the world’s largest grain exporter.

In a statement, US Trade Representative Robert Lighthizer and Secretary of Agriculture Sonny Perdue welcomed the decision, saying China’s system “ultimately inhibits TRQs from filling, denying U.S. farmers access to China’s market for grain.”

If China’s TRQs had been fully used, $3.5 billion worth of corn, wheat and rice would have been imported in 2015 alone, it said, citing U.S. Department of Agriculture estimates.

The two WTO rulings would help American farmers “compete on a more level playing field,” the USTR statement said, adding: “The (Trump) Administration will continue to press China to promptly come into compliance with its WTO obligations.”

The latest WTO panel said that the United States had not proven all of its case, failing to show that China had violated its public notice obligation under the General Agreement on Tariffs and Trade (GATT) in respect to TRQs.

China’s Ministry of Commerce said in a statement on Friday it “regrets” the panel’s decision and that it would “earnestly evaluate” the panel’s report.

China would “handle the matter appropriately in accordance with WTO dispute resolution procedures, actively safeguard the stability of the multilateral trading system and continue to administer the relevant agricultural import tariff quotas in compliance with WTO rules,” it said.

Either side can appeal the ruling within 60 days. — Reuters

Stocks to move sideways as market seeks leads

April 22, 2019 | 12:01 am

STOCKS are seen to continue moving sideways in the coming days as investors watch out for shareholders’ meetings this post-Easter week.

The 30-company Philippine Stock Exchange index (PSEi) went up 8.69 points or 0.11% to close at 7,835.15 on Wednesday amid a shortened trading week for the Holy Week break.

Week on week, the PSEi was lower by 0.58% or 45.67 points, with a value turnover of P19.89 billion.

The PSEi continued its weak performance from the previous week, going down by more than 1% on Monday, then recovering in the remaining trading days, managing to stay above the 7,800 mark.

Net foreign buying continued last week to average at P608.58 million.

“Investors are bound for a relatively busy post-Easter week, with the line-up of annual shareholders’ meetings,” online brokerage 2TradeAsia.com said in a weekly market note.

Aside from reviewing 2018 performances, stakeholders will also be looking at firms’ earnings growth this year based on their first-quarter results.

Allocation of capital expenditures will also be a point of focus, especially companies’ possible changes in spending, the brokerage said.

“As the weeks go by, the market looks weaker and weaker. The continuous inflow of foreign money has kept it from going into freefall. The 7,800 level has proven to be a strong support level. Economic fundamentals continue to get better which will translate into better corporate earnings,” Christopher John Mangun, research head of Eagle Equities, Inc. said in an e-mail.

However, he flagged concerns over higher oil prices, which could push prices of goods up.

Oil futures edged up on Thursday as a drop in crude exports from the Organization of the Petroleum Exporting Countries’ de facto leader, Saudi Arabia, and a draw in US drilling rigs and oil inventories supported prices.

“Investors are still not convinced that it is time to get back in the market. Perhaps, investors are waiting until after the election before they start to consider getting back in,” Mr. Mangun said.

2TradeAsia.com also noted that traders who are into short-term trading opportunities may take on stocks that would perform well during the elections and those driven by the summer.

“With 2019’s fiscal budget in place and the end of 2018 tax reporting season, participants will trace sequels to protect approvals and deployment, especially for infra-based tickets. The market might soon price-in possibilities for fiscal tax receipts to surprise on the plus side, boost available state funding in the process. Meanwhile, expect volatility within an ascending course, given the government’s planned panda float next month,” it added.

“The PSEi may continue to trade sideways but a break below support at 7,800 will target the next support at 7,600,” Mr. Mangun said.

Meanwhile, for 2TradeAsia.com, support is seen at 7,700-7,750, with resistance at 7,900-7,950. — V.M.P. Galang

Peso to climb on US-China talks

April 22, 2019 | 12:01 am

THE PESO is seen to strengthen against the dollar this week on the back of upbeat expectations on US-China trade talks.

The local unit stood unchanged on Wednesday at P51.765 versus the greenback, as market players positioned ahead of the Holy Week break.

Week on week, the peso climbed from the P51.90-per-dollar finish last April 10.

Ruben Carlo O. Asuncion, chief economist at UnionBank of the Philippines, Inc., said the peso will likely strengthen mainly due to “the positive perception about the resolution of the trade issues between the US and China.”

Reuters reported that US President Donald J. Trump on Wednesday said Thursday that Washington and Beijing were nearing to strike a trade deal, which could be announced within four weeks.

A market analyst said the greenback may shed some of its gains towards the end of the week on the back of the positive developments on the US-China trade agreement as well as likely weaker US housing data and gross domestic product growth.

“[T]he first-quarter expansion of the US economy is seen to decelerate down to a 1.8% pace from a growth of 2.2% in the fourth quarter of 2018,” the analyst said in an e-mail. “These reports…could revive investors’ appetite for riskier currencies like the peso,”

However, the market watcher noted that the dollar is expected to appreciate today amid safe-haven buying following soft manufacturing reports from Japan, France and Germany, as well as the upbeat pronouncements of a US Federal Reserve official.

For this week, the analyst expects the peso to move between P51.40 and P52.10, while Mr. Asuncion gave a P51.60-P51.90 range.

The analyst said the dollar’s projected decline could be reversed by negative developments in the US-China talks or hints of a cut from the local central bank. — K.A.N. Vidal

Suzuki’s solid subcompact: The Dzire

April 22, 2019 | 12:01 am

By Manny N. de los Reyes

WHILE its platform-mate, the Suzuki Swift hatchback, is on its third generation here in the Philippines, the all-new Dzire subcompact sedan is only on its second. The latest versions of the two small Suzukis were unveiled locally late last year.

Both the Dzire and Swift, which have identical wheelbases, boast Suzuki’s new-generation platform, HEARTECT. The continuous frame resulting from the comprehensive overhaul of the vehicles’ underbody structure and component layout increases underbody stiffness. The highly rigid yet light body helps improve the vehicles’ dynamic performance, particularly in terms of handling and riding comfort.

The Dzire’s structure is built using Suzuki’s Total Effective Control Technology (TECT), which disperses energy to absorb impact and mitigate injury, not just in vehicular collisions, but also in cases of a pedestrian accident. It’s also equipped with dual air bags.

But while the previous Dzire was simply a Swift hatchback with an abbreviated trunk grafted onto its rear, the new model now bears styling that looks much more harmonious and unified. The new Dzire is lower and wider than the previous model. The trunk still looks a tad short, but not as much as in the previous model. (The trunk is now actually bigger, not just visually but also in terms of capacity.) And despite its shortness, it’s a good-looking rear with sharp lines and large LED taillights that look very upscale, especially when lit up at night.

More importantly, from many angles, the new Dzire actually looks good. The front and front-three quarter angles are its best views, thanks to those expressive headlamps, large chrome-trimmed grille, and graceful front fenders.

You won’t mistake the Dzire’s silver-accented cabin for a luxury car’s, but it’s no penalty box either. In fact it’s got one of the better-looking interiors in the subcompact sedan class.

Overall space is surprisingly generous given the car’s tidy exterior dimensions. The driver enjoys an ergonomically arranged dashboard and a flat-bottom steering wheel.

Rear seat passengers are often given the short end of the stick but not in the Dzire. They’ve got a dedicated AC blower, a 12V adaptor, adjustable headrests, and a foldable center armrest. Rear legroom, while not class-leading, is certainly not bad.

There is also a seven-inch four-speaker touchscreen multimedia (Bluetooth/USB/Aux) infotainment system. And like most Japanese cars, there’s a thoughtful amount of storage areas sprinkled around the cabin.

The Dzire comes with a small 1.2-liter four-cylinder VVT engine that generates 82hp and 113Nm of torque. It rides on front MacPherson struts and a rear torsion beam. These are hardly the stuff that car guys’ dreams are made of. But driving the Dzire is an eye-opener. It certainly won’t make you long for lapping sessions at Clark Speedway, but it’s got plenty of zip for everyday driving while sipping fuel.

Ride quality is also very impressive. The suspension feels well sorted out — something the Japanese have always been adept at. Handling is responsive and has good feedback despite the use of an electric power steering system. Typical Suzuki. Riding comfort is likewise excellent for a car of its size. The Dzire rolls on 185/65R-15 tires.

The new Dzire uses Suzuki’s Auto Gear Shift (AGS) technology, which combines the fuel efficiency of a manual transmission and convenience of an automatic. AGS technology is an automated five-speed manual transmission featuring an Intelligent Shift Control Actuator that automatically operates the clutch and shifting operation. There is no longer a clutch pedal nor a traditional manual gearshift lever. The gearshift lever gate looks more like an automatic car’s, so the driver just needs to place the lever in D or R to get the car moving forwards or backwards.

It’s brilliant in principle — and similar to Ford’s much-maligned Dual Clutch Transmission — and works fine in most situations. However, there are still times when you wish the system had shifted earlier or later — or smoother.

For those who’d rather do the shifting themselves, the new Dzire also comes with a traditional manual in the handsomely priced P638,000 GL MT base model. Our more feature-packed GL+AGS test unit comes in at a still high-value P698,000.

All things considered, the all-new Dzire is a strong subcompact contender and gives Suzuki a two-pronged attack in the subcompact wars. While the bigger, roomier and more expensive Suzuki Ciaz takes on the Toyota Vios, Honda City, Hyundai Accent, and Nissan Almera, the Dzire/Swift twins take on the fast-selling Mirage (which is the only other model in the Dzire’s price range that also comes as a hatchback and a sedan). Suzuki is on a solid course.

Cristal Union to shut two French sugar plants amid market slump

April 22, 2019 | 12:01 am

PARIS — French sugar producer, Cristal Union, said on Thursday it tipped into the red last year and plans to shut two factories in France as it expects global oversupply to continue pressuring prices.

The closures, which will take place next year, are the latest sign of restructuring in Europe’s sugar industry following the end of EU production and export quotas in 2017, which prompted many producers to boost output just as prices collapsed amid high world stocks.

“We have understood that there was too much sugar cane and sugar beet on earth to produce the sugar that the world needs,” Alain Commissaire, chief executive of France’s second-largest sugar producer, told Reuters in an interview.

The closures were also linked to the group’s poor financial results in the past year due to a drop in the sugar beet crop and historically low sugar prices, Commissaire said.

Cristal Union recorded a loss of 99 million euros ($111 million) in its 2018/19 year to Jan. 31, compared to a net profit of 135 million euros in the previous year, he said.

He expected sugar production to keep rising in Brazil, India, and Thailand and neighboring countries.

Cristal Union plans to shut its sugar factory located in Bourdon in Central France, which produces 40,000 tonnes of sugar a year, and halt output in Toury, southwest of Paris, which makes 65,000 tonnes of sugar a year. The cooperative will also reduce activity at the Erstein packaging factory in Alsace. The closures would take effect next year after the harvesting and processing of the 2019 sugar beet crop, Commissaire said.

Unions were informed about the restructuring plan on Wednesday and it was approved by the group’s board on Thursday.

Commissaire did not expect sugar prices to rebound significantly from the historic lows near which they are hovering currently.

“This means we have no solution than to think of a new industrial model that will allow us to live with these prices,” he said.

Two months ago, Suedzucker, Europe’s largest sugar refiner, said it would halt sugar production at two factories of its French branch Saint Louis Sucre, as part of a wider restructuring plan which also includes closures in Germany and Poland.

France’s largest sugar maker Tereos has said it has no plans to close factories in France.

Commissaire had told Reuters in February that the “golden age” for EU sugar producers was over and that he expected significant changes in the EU sugar sector. — Reuters

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