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Brief History

The Central American Plantations Corporation – CAPCO - acquired Palo Gordo, a 17 caballeria estate located in Guatemala, Central America, near the San Antonio, Suchitepéquez Municipality in 1929. They started to harvest sugar cane in Palo Gordo and set up a sugar mill which began operations in 1939, with the capacity to shred a daily amount of one thousand tons of cane.

The State of Guatemala bought it and was under the administration of the National and Regulated Rustic Estates Department. During the 1961/62 harvest, it milled 20,000 tons of its own sugar cane and 162,957 tons of the private sector. It produced 342,820 quintals of different types of sugar, yielding 186 pounds per ton of sugar cane.

On July 12, 1962 the Crédito Hipotecario Nacional auctioned the Palo Gordo Sugar Mill. The Palo Gordo Sugar Mill was bought in Public auction by 186 of the sugar cane farmers and businessmen who delivered their cane to the mill; they were organized in the Cooperativa Agrícola Industrial Ingenio Palo Gordo, S.A. (Industrial Farming Cooperative Palo Gordo Sugar Mill, Inc.).

The new group that owned Palo Gordo Sugar Mill, located at Kilometer 142 ½ of the CA-2 Highway to Mazatenango, began programs to increase the milling capacity and achieved a significant expansion by increasing their daily milling capacity to 4,000 tons.

In 1975 the Empresa Agrícola Industrial Ingenio Palo Gordo (Industrial Farming Company Palo Gordo Sugar Mill) purchased a new tandem of five mills with 72-inch rollers and added a fourth roller, thus expanding their daily sugar cane milling capacity to 7,000 tons. They also bought a smelting and welding workshop where much of the equipment of Palo Gordo Mill was built, specially the evaporation equipment.

In 1988, they started harvesting the cane with the cut, pick-up and transport method. Plague and disease control technologies were introduced, banning completely the use of chemical insecticides for the sugar cane harvest, increasing the irrigation system; soil analysis was implemented in order to apply the specific fertilization based on the harvest requirements. Developing the production of purified seeds until they reached 100% of the renewals with this seed and 50% of the area increased the ripening.

A Tate & Lyle syrup clarification system was installed to improve sugar quality and the gradual process of automation of the plant took place. In 2002, they acquired two new mills, with six 84-inch rollers, in the first and last position of the tandem. To mill with a six-mill tandem powered by 1,000 HP Elliot turbines, increased milling capacity to 10,000 tons daily. The significant increase in production enabled agricultural development in the area. In the recent 2003/04 harvest.

For the first time in IPG´s history, a record harvest of 2,000,000 quintals after only 149 days of harvesting was registered; efficiently obtaining sugar after 925,000 tons of sugar cane was received.

2011 – 2012
In the process of continuous improvement, IPG exceeded sugar production expectation to 2,773,000 quintals; top-quality alcohol production was also improved by 40% with a record production of 12,000,000 liters. Achieving an overall improvement of the departments that set in motion IPG’s challenges.