Mozambique: Illovo Sugar to double sugar production at Maragra factory

22 May 2008

Johannesburg, South Africa, 22 May – South African company Illovo Sugar plans to invest 250 million rand in doubling production to 300,000 tonnes per year at its Mozambique facility, the company’s chief executive said in Johannesburg Tuesday.

Don MacLeod said that the invesment to be made in Mozambique over the next two years at the Maragra factory, “is part of our expansion strategy.”

The expansion strategy in African countries such as Zambia, Mali and Tanzania is due to the free access regime that is due to come into place next year in the European Union.

“Our initial aim is to supply the local market before starting to export to the European Union,” Macleod said, adding that the expansion projects included construction of a factory in Mali, at a cost if 1.4 billion rand, to produce 200,000 tonnes of sugar per year.

Having recently finished the first stage of its expansion project in Zambia, where production is expected top rise to 300,000 tonnes, Macleaod said that, when the second phase is concluded in April of next year, the factory would have a capacity of 440,000 tonnes per year.

With these and other smaller expansions in Tanzania e Malawi, the group expects to see its sugar production capacity increase by over 50 percent in the next five years to 1.8 million tonnes per year. (macauhub)