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Olam to slash capital expenses by $1 billion following an internal review

Published on Apr 25, 2013 5:56 PM
 
An Olam International employee loads a truck with boxes of cashew nuts for export, in Brazil. Olam International will slash capital expenditures, raise cash and improve its transparency as it looks to establish itself as leaner stronger commodities player. -- FILE PHOTO: OLAM INTERNATIONAL LTD

Olam International will slash capital expenditures, generate cash and improve its transparency as it looks to establish itself as leaner stronger commodities player.

Among the major changes announced after the market closed on April 25, the commodities group pledged to reduce its planned capital expenditure by $1 billion as part of its new strategy.

It will monetise some its recent acquisitions through sale and less back as part of its drive to release cash and reduce fixed asset intensity. This is expected to generate $1.5 billion in cash over three years.

Olam is looking to reduce the complexity in its business by focusing on the products they have a leadership position in.

 
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