R/€ = 15.25Change: -0.01
R/$ = 14.41Change: -0.02
Au 1054.88 $/ozChange: -3.00
Pt 827.50 $/ozChange: -8.00
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?

And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Letters About Us
RSS Feed
Article   Comments   Other News   Research   Magazine  
Apr 09, 2009

Illovo outlines plan to streamline SA business

© Reuse this

JSE-listed sugar producer Illovo Sugar has made a number of strategic disposals, investments and changes in structure that would result in a more streamlined South African business, it reported on Thursday.

It would also expand the group’s footprint and future earnings potential in the rest of Africa, it told shareholders in a statement.

The producer announced that it was planning to transfer its South African business to a wholly owned subsidiary from April 1, 2010.

Further, the sale of its Umfolozi sugar mill to a grower consortium had been concluded, while it had reached an agreement with TSB Sugar for the sale of its Pongola sugar mill.

In addition, the producer had bought a 30% stake in a new business entity, which had bought the Gledhow sugar mill from Ushukela Milling.

Illovo would also provide technical services to the new entity, in which paper and packaging group Sappi and a consortium of cane growers, Ushukela, also owned a stake.

Meanwhile, the group had entered into a joint venture (JV) with a local community at Maragra, in Mozambique, for the development of 4 000 ha of land into cane plantations over the next two years.

The project, which was situated about 40 km from Illovo’s Maragra sugar mill, would produce 400 000 t/y of cane and was linked with the doubling of the capacity of the sugar factory in the area to 150 000 t/y of sugar.

Further, the group had acquired an option to buy a 90% stake in the Búzi sugar estate, near Beira, in Mozambique, which could potentially lead to the construction of a sugar factory in the area in future, stated Illovo.


The second phase of the group’s expansion project, in Zambia, which increased the capacity of the Nakambala sugar mill to 450 000 t/y of sugar, meanwhile, had been completed by the start of April, as planned.

The producer said that it had also acquired a majority stake in a cane growing company that delivered cane to its Nakambala mill. The company was producing about 325 000 t/y of cane, at present, with the potential to increase this output further.


Illovo Sugar had also secured an effective route for the export of its products to the European Union (EU) market from October by concluding an investment in a JV partnership with British Sugar.

Duty-free and quota-free sugar exports from Africa, the Caribbean and Pacific exporters and from least-developed countries into the EU would come into effect on October 1.

Edited by: Mariaan Webb
Creamer Media Senior Researcher and Deputy Editor Online
© Reuse this Comment Guidelines (150 word limit)
Other Agriculture News
In the midst of the current drought crisis facing South Africa, Global Forum for Innovation in Agriculture (GFIA) believes that there is a need for urgent long-term, sustainable, innovative solutions that will help mitigate the impact of climate change, in order to...
Food prices are going up, and up due to the drought. The Department of Agriculture, led by Minister Senzeni Zokwana and Deputy Minister Bheki Cele, presented a report to a parliamentary committee on Tuesday, where they discussed the impact of the drought on food...
Despite a bleak economic outlook, JSE-listed Omnia is confident of returning to an upward growth trajectory after posting a double-digit drop in earnings for the six months to September 30. Shares in the specialised chemical products and services provider plunged...
Article contains comments
Latest News
Updated 36 minutes ago A power-generating ship was officially welcomed at Ghana's main port on Sunday after arriving the previous day in what Power Minister Kwabena Donkor said was a bid to keep the country on track to end chronic blackouts. Power has become a political issue, and anger...
Updated 50 minutes ago South Africa's Illovo Sugar said on Monday a scorching drought in crucial sugar-producing regions and low prices cut its half-year profit by nearly 60 percent. Headline earnings per share - the main gauge of profit in South Africa that strips out certain one-off...
Updated 1 hour ago Eskom has installed a R144 million transformer in Arconhoek in a bid to ensure reliable power supply to the communities in rural Bushbuckridge local municipality, Mpumalanga. Eskom spokesperson, Khulu Phasiwe said the commissioning of a new transformer at the...
Recent Research Reports
Water 2015: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2015 Report considers the aforementioned issues, not only in the South African context but also in the African and global context in terms of supply and demand, water stress and insecurity, and access to water and sanitation, besides others.
Input Sector Review: Pumps 2015 (PDF Report)
Creamer Media’s 2015 Input Sector Review on Pumps provides an overview of South Africa’s pumps industry with particular focus on pump manufacture and supply, aftermarket services, marketing strategies, local and export demand, imports, sector support, investment...
Liquid Fuels 2015: A review of South Africa's liquid fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2015 Report examines these issues in the context of South Africa’s business environment; oil and gas exploration; fuel pricing; the development of the country’s biofuels industry; the logistics of transporting liquid fuels; and...
Road and Rail 2015: A review of South Africa's road and rail sectors (PDF Report)
Creamer Media’s Road and Rail 2015 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail infrastructure and network, the funding and maintenance of these respective networks, and...
Defence 2015: A review of South Africa's defence sector (PDF Report)
Creamer Media’s Coal 2015 report examines South Africa’s coal industry with regards to the business environment, the key participants in the sector, local demand, export sales and coal logistics, projects being undertaken by the large and smaller participants in the...
Real Economy Year Book 2015 (PDF Report)
There are very few beacons of hope on South Africa’s economic horizon. Economic growth is weak, unemployment is rising, electricity supply is insufficient to meet demand and/or spur growth, with poor prospects for many of the commodities mined and exported. However,...
This Week's Magazine
The BMW Group will invest R6-billion at BMW Group South Africa’s (BMW SA’s) Rosslyn plant to produce the next-generation X3 sports-activity vehicle (SAV) for the local and export markets. Rosslyn will continue production of the current 3 Series through its lifecycle,...
The lack of consequences for poor performance and transgressions on the part of contractors remains a significant hurdle to tackling South Africa’s service delivery challenges, delegates heard at the Consulting Engineers South Africa Infrastructure Indaba, on...
City of Ekurhuleni executive mayor Mondli Gungubele earlier this month officially named the city’s bus rapid transit (BRT) system, Harambee.
NICK CHRISTODOULOU As about 58% of data stored by organisations is dark, they must identify this dark data to expose risks and valuable information
About 58% of unstructured data stored by companies is dark data, which means that the value or regulatory importance of the data has not been determined. Subsequently, most of the stored data add costs, rather than increasing revenue or reduce regulatory risks, says...
BRIAN VERWEY Effective management, review and administration of non-core elements can improve business operations and increase revenue and decrease unforeseen risks
Effective logistics, import/export and manufacturing consulting services require detailed industry knowledge and experience, but can add significant value to these industries by providing expert advice on various technical elements in their value chains, says...
Alert Close
Embed Code Close
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks
Subscribe Now for $96 Close
Subscribe Now for $96