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24-07-2017

Tongaat Hulett launches sugar refinery project in Mozambique


Tongaat Hulett announced details of its ongoing commitment to the long-term success of the Mozambique Sugar Industry with a new investment of some Mt2,5 billion (R550 million) in the construction of a Sugar Refinery at its Xinavane operation. On the morning of 24 July 2017, Prime Minister of Mozambique, His Excellency Carlos Agostinho Do Rosário, Chief Executive Officer of Tongaat Hulett, Mr Peter Staude, the Minister of Trade and Industry Ernesto Max Tonela and numerous other dignitaries joined stakeholders at the Ground Breaking Ceremony in Xinavane, as they celebrated the launch of the project. 

The Ground Breaking Ceremony will be followed by a Gala Dinner in Maputo, attended by the Prime Minister, His Excellency Carlos Agostinho Do Rosário, Tongaat Hulett Chairman, Bahle Sibisi, Tongaat Hulett CEO, Peter Staude and the MD of Tongaat Hulett Mozambique, Rosario Cumbi. Numerous dignitaries, including the Ministers of Trade and Industry, Agriculture, Finance and Economy, and various stakeholders, will attend these events.

The existing sugar refining capacity in Mozambique is some 20 000 tons per annum, while it is estimated that some 70 000 tons of refined sugar is consumed annually. The majority of Mozambique's refined sugar requirements is currently imported. The construction of Tongaat Hulett's 90 000 ton per annum Sugar Refinery, due to be completed in the second half of 2018, will be sufficient to meet projected local annual market demand for the next seven to ten years. The completion of the Sugar Refinery at Xinavane will ensure that this operation further entrenches its position as the leading sugar investment in Mozambique. 

Peter Staude, Tongaat Hulett CEO said, "The Sugar Refinery Project reflects Tongaat Hulett's commitment to the future of the Mozambican Sugar Industry, relevant sugar industry stakeholders including customers, the agricultural sector and the broader economy as the project will ensure that previously imported refined sugar is now produced in Mozambique while also providing further support for the significant number of rural community members that benefit from the industry."

"We are cognisant of the role the Sugar Industry plays in the socio-economic development of the country and in the rural communities in particular. We are delighted to learn about this further investment by Tongaat Hulett, which will catapult government efforts for domestic production, and reduction of imports", said the Prime Minister of Mozambique, His Excellency Carlos Agostinho Do Rosário.

The refined sugar produced will be industrial/bottler grade and carry food safety FSSC 22000 certification. White sugar is required to produce soft drinks, dairy, beer, sweets and confectionary products. It is anticipated that the increased availability of white sugar will contribute towards the growth of these industries in Mozambique. The Xinavane Refinery, located some 150 kilometres from Maputo benefits from its proximity to the Maputo harbour to export and supply surplus white sugar to African markets.

The design and engineering of the Sugar Refinery innovatively integrate proven technology with state-of-the-art Tongaat Hulett process and equipment design to produce high quality white sugar, meeting international standards and the requirements of the most demanding customers. The majority of the refinery equipment will be fabricated from stainless steel, ensuring that the plant design complies with the most stringent food safety and quality requirements.  The design also facilitates future expansion of the capacity of the refinery. 

Recognizing with appreciation the efforts of the Mozambican government to create a business environment that supports investment, Peter Staude concludes, "Tongaat Hulett's ongoing investments in the Sugar Industry in Mozambique supports Government's objectives of growing the local economy, promoting domestic production and contributing to the balance of trade equilibrium. The company is committed to working with Government and other relevant stakeholders to facilitate the success of the Sugar Refinery Project and its other investments at Xinavane and Mafambisse, thereby contributing to social upliftment, rural development and job creation."

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