Leyte Agri Corporation began as AA Alcohol Corporation in 1987. It struggled initially but improved under new leadership in the early 1990s. In 2001, it was purchased by its current owners and renamed Leyte Agri Corporation. It has since expanded its operations and diversified its business activities while continuing to invest in its employees through training, benefits, and social events. The company aims to operate sustainably while supporting community development in the areas around its plant.

1. A BRIEF HISTORYA BRIEF HISTORY
OFOF
LEYTE AGRI CORPORATIONLEYTE AGRI CORPORATION

2. A BRIEF HISTORY OF LEYTE AGRI CORPORATIONA BRIEF HISTORY OF LEYTE AGRI CORPORATION
In, 1987, the company being known as AA Alcohol
Corporation and owned by the family of the famed Elena S. Lim,
started the plant construction under the management of Mr.
Joseph Tan. The bulk of the plant machineries were shipped from
Asian Alcohol, the previous alcohol plant located at the town of
Consolacion, Cebu. Previous employees of the Asian Alcohol were
also hired to help and assist in the construction and assembly of
the purchased materials. Unfortunately, only an insignificant
quantity of low-grade alcohol at a very low recovery of molasses
was achieved during the stewardship of Mr. Joseph Tan. Instead of
finding remedies to improve the operation, the company
concentrated on developing a strong basketball team by hiring
basketball players instead of distillery technicians. In short, AA
Alcohol succeeded in building its name as strong basketball team
instead of being successful in the alcohol business. The basketball
team made its mark in the Philippine Basketball Association or
popularly known as PBA, the most notable of which is Mr. Rey
Evangelista.

3. Early in 1992, Mr. George Tan, one of the owners, took over the
management of the company together with the group lead by Mr. Domingo
Littaua and continued the plant construction and its finishing touches, and at
the same time started requesting the Department of Environment and Natural
Resources or DENR for a trial run operation. To determine and monitor if the
company complied with the terms and conditions in the issued Environment
Compliance Certificate (ECC), the Multi-Tripartite Monitoring Team which
composed of the representatives from DENR, LGUs, Religious and Teachers
group, NGOs and from the company was established in March
1992 to conduct quarterly monitoring of air, water and sea pollution controls.
Now that there is already an application from DENR, a management team
was necessary.
In October 1992, Mr. Luis-Ma, L. Zabaljauregui was hired and sent
by the owners to the plant site as the company’s chief operating officer and
was task in improving operations and producing food grade alcohol suitable
for compounding into wines in commercial quantity. By January 1993, the
company was able to sell commercially viable alcohol of 1,000 liters to a
local buyer by the name of Ms. Elizabeth Chua. On May 6, 1993, La
Tondena, Inc. (LTDI) started sending its barge to ship alcohol produced.

4. To assist him in achieving his goal, Mr. Zabaljauregui hired and engaged a team
led by Mr. Elmer M. Meniano last February 1994 as the new Resident Manager.
Technical staffs were also hired to augment the line-up.
Mr. Zabaljauregui and Mr. Meniano were indeed born leaders who were
full of dreams not only for the company but also for its employees; with high
hopes and, both men shares common goals. They were able to systematically
build a viable and profitable company from a losing one. Indeed, it was the keen
foresight and good stewardship by these two men that makes the complete turn-
around of the company from a losing one to a growing business.
After several months of improvements, training and adjustments, the
plant started to operate twenty four hours a day with plant employees reporting in
a three-shift schedule. Production of alcohol reached 20,000 to 22,000 liters per
day the bulk of which was being sold to La Tondeña, Inc. But because of the
irregular withdrawal of LTDI, stockpiling of produced alcohol incurred and has
affected production. To correct the situation, Mr. Zabaljauregui together with Mr.
Meniano went to Cebu City and as far as Cagayan de Oro City to develop new
market and buyers of alcohol.

5. Their efforts paid off and orders from various buyers started to
come and the customers had expanded. Even though orders from
these buyers kept coming in, stockpiling of alcohol continued
causing the slow down of operation. To remedy the problem,
another alcohol tank which could accommodate up to one million
liters was constructed.
In the year 1995, the name AA Alcohol Corporation was
changed to AA Aqua Agri Corporation to allow diversification and
expansion of business. Various employees were sent to
companies owned by the Lim and Tan families particularly in the
aquaculture business. Not long afterwards, another groups or
teams were hired to managed and run the aquaculture business
located at the province of Zamboanga del Sur under the direct
supervision of the Ormoc management. A team led by Mr.
Herminio Simbol run and operated a hatchery, another one under
Mr. Salustiano Cuadro operated a prawn farm, both of which were
located in the municipality of Naga, Zamboanga del Sur.

6. Another team was also sent to Nasugbu, Batangas to observe
and to learn the operation of a liquified carbon dioxide plant of
which planned purchase was in the final stage. The company as a
whole kept in growing and expanding rapidly. It was able to meet
the challenges, fulfill its mission and commitments not only to
the owners but also to its employees.
While the objective of AA Aqua Agri to expand was
attained, it is becoming evident that AA Aqua is concentrating on
its “core” business which was different from the alcohol business.
It has become clear when they announced the decision to sell the
alcohol distillery early January 2001. In July 2001, the
employees were informed by the management that the plant and
its machineries and equipment will be sold by the owners,
proceeds of which will be used to augment the capitalization of
their various electronic firms which actually is their line of
business. Management reassures all the employees that no jobs
will be lost and no reshuffling of employees will be done if the
sale will push through.

7. Then in August 31, 2001, all regular employees were made to
sign two separate documents; quit claim papers from AA
Aqua-Agri Corporation with corresponding payment for their
length of service and other benefits due to them, and a new
contract being hired by Leyte Agri Corporation with the same
position, salary and other benefits they received and enjoyed
at AA Aqua-Agri Corporation.
On September 1, 2001, Leyte Agri Corp. took over AA
Aqua and officially run the business and made representations
to various clients and other companies, particularly with
government agencies. The new owners brought with them
their strength in supplying molasses and access to other
market of the product thereby allowing the plant to
concentrate in producing more good quality alcohol. This day,
indeed, signaled the beginning of bigger challenge and
commitments for everyone to look for a better future and
beyond the horizon.

8. During the early months of the year 2002, the new owners and
directors of LAC led by Mr. Julio D. Sy, Sr. and Mr. Jerrie K. Chang,
together with some technical consultants, visited the plant. This visit
resulted in a very productive exchange of ideas and some suggestions
to improve and increase the production of alcohol with high recovery
ratio (yield). The completion of the construction of mixing tanks for
denaturing operation was also accelerated allowing the company to
secure a permit for denaturing, thus, creating new market for its
product. The first denaturing operation was undertaken with
International Pharmaceuticals, Inc. (IPI) at Cebu City.
During the transition period, the construction of the liquified
carbon dioxide (CO2) plant was completed. But it was during the take-
over of the new owners that a commercially viable quantity of CO2
with high purity was produced. This is presently sold and delivered to
local buyers and also to various clients from Cebu and as far as Davao.
Negotiations to supply CO2 to the two (2) biggest soft drink
multinational companies has been initiated but such undertaking did
not push through.

9. Towards the end of November 2003, a gloomy news and
uncertainty somewhat hang in the consciousness of the
employees brought about by the announcement of the
departure of the amiable and admired chief operating officer,
Mr. Luis-Ma. L. Zabaljauregui. Questions has started to float in
the minds of the Ormoc plant staff to what will happen to the
company with the departure of Mr.Zabaljauregui.
An amiable and soft-spoken man in the person of Mr.
Ruben A. Villanueva took over as the new chief operating
officer. Fortunately, he was stranger to the employees because
of his periodic plant visit and already had get acquainted with
everyone. Mr. Villanueva was actually an expert in boiler
operations and because of his first-hand and earnest on-site
observations in the process of actual alcohol productions, we
can already say and with candor that our new chief operating
officer has finally arrived; that with him and our resident
manager, Mr. Elmer M. Meniano, at the forefront, we can be
assured of a fruitful and brighter days ahead.

10. As in the past, social gatherings and affairs were being
celebrated by all plant and Manila-based employees with all
expenses paid for by the company. To name a few, these
events include the annual sports fest with the summer outing,
usually held in a beach resort, as the event’s culmination;
and, the annual Christmas party where the venue, food and
related activities being planned and chosen by the majority of
the plant supervisors and department heads during a
particular staff meeting held several weeks and even a month
prior to the actual event. These festivities are freely given to
all employees to break the monotony in the work place and to
enhance the working and personal relationships of each
employee. As Leyte Agri Corporation, the past two years were
no exception with the celebrations and events being attended
by the new chief operating officer and the Manila-based
employees.

11. Management of Leyte Agri Corporation likewise continue and
cultivate the harmonious relationship of the company with the
surrounding communities; continue to give scholarship to the
students who graduated at the top of their class at Ipil National High
School and continue to bestow such grant if said student will
maintain high grades in his college studies. Monetary and/or non-
monetary contributions and donations are given not only to the
elementary and high schools located in the same barangay itself thru
the barangay council; likewise, to some government entities. A
contingent selected from the employees will be sent to join parades
and other local activities if and when invitations for such events will
be received.
Last June 25, 2004, some members of the company’s Board
of Directors and accompanied by Mr. Ruben A. Villanueva, made
another visit to the plant site. Members of the BOD who made it to
visit were Atty. Alejandro Barin, Chairman of the Board, Mr. Julio Sy,
Jr., President; and Mr. Remigio V. Tan, Jr., Director.

12. Those who were not able to join the trip were Mr. Jerrie K.
Chang, Treasurer and Mr. Michael L. Escaler, Director. Another
person who joined the group was Mr. Patricio Villanueva, our
financial consultant particularly in financial matters to the
companies owned and/or controlled by the group led by Mr.
Julio D. Sy, Jr. A scheduled meeting between the plant
supervisors and department heads with the visiting Manila-
based company officers was held at Sal’s Bar and Restaurant
in Ormoc City. Mr. Elmer M. Meniano introduced individually
the plant supervisors to the visitors after which the meeting
proper started and presided by Mr. Julio D. Sy, Jr. The
company president opted to speak in Cebuano of which he
was fluent, having his roots traceable from Dumaguete City.
Various questions, suggestions, issues and/or clarifications
were being thrown at both sides that were being discussed
and eventually answered during the open forum. It was also
during this meeting that the selection of the winners for the
“Fertilizer Brand and Logo” contest on the fertilizer produced
by the company and will be put into the market.

13. Judges for this contest were the BOD members and they
unanimously selected the entry submitted by the department
head of Research & Development, Ms. Dalia D. Atok as the
first prize winner. Very satisfied with the result and having a
first-hand observation of the unity and cooperation shown by
the employees on the said contest, the original published prize
of Php 2,000.00 was raised to Php 3,000.00 and likewise
added a second and third prize winners. Entries submitted by
Ms. Maryan Nabre and Mr. Corsino Ytac won second and third
prize, respectively. Before the adjournment of the meeting,
Mr. Julio D. Sy, Jr. made a promise that such meeting
between the plant officers and BOD members will be held on
an annual basis, and that he and other members of the board
will try to attend the various annual events celebrated at the
plant site if not in conflict with other companies.

14. As a final assessment, it was on September 1, 2001
that the company became officially known as Leyte Agri
Corporation and the date that the new owners formally took
over the management of the company. It was this date that
beckon the new era for the company and its employees.
Therefore, it is but just fitting that come September 1, 2004
and every year thereafter, we not only celebrate this day as
an anniversary but also a day to reflect the year just passed;
either we have fulfilled our tasks and commitments to the
company and to our co-employees; to find cure and remedy
for our shortcomings and in areas where we have failed. In
short, this particular date will remind everyone of our
responsibilities and commitments in the years ahead of us.