A Dominican spaghetti, cracker and cookie manufacturer, Malla & Compañía has become the new partner of the state in the new Molinos del Ozama mill. Malla & Cía. won the tender for the 50% ownership of Molinos Dominicanos, the country’s largest mill and the smaller Molinos del Norte, also state owned. Malla will be the private sector operating partner of the newly created Molinos del Ozama. Malla bid the highest, or US$16,330,000 for the right to be the country’s primary flour vendor. The company assumes a debt of RD$125 million with the Banco de Reservas. Malla competed against Seaboard/Corripio/Continental Grain, Pan American Grain, and ADM Milling. This is the first privatization of a major state enterprise. The move is intended to reduce the burden on state finances of subsidies granted to the mill, that operated in the past as a welfare institution and/or a booty for those with political influence.
