http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 14.20Change: 0.11
R/$ = 11.26Change: 0.02
Au 1214.97 $/ozChange: 6.28
Pt 1288.00 $/ozChange: -14.00
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
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 Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
May 31, 2002

Sugar group consolidates African assets

Back
Illovo|Africa|Glendale|Housing|Industrial|Merebank|Monitor Sugar Company|Projects|Roads|Africa|Europe|Canada|Malawi|Mozambique|South Africa|Swaziland|Tanzania|United States|Zambia|Zimbabwe|Maragra Sugar Mill|By-product|Downstream Products|Manufacturing|Product|Products|Service|Social Infrastructure|Floods|African Customs Union|Infrastructure|Operations|Michigan
|Africa|Housing|Industrial|Projects|Roads|Africa||Tanzania|Zambia|||Manufacturing|Products|Service||||Infrastructure|Operations|
illovo-city|africa-company|glendale|housing|industrial|merebank|monitor-sugar-company|projects|roads|africa|europe|canada|malawi|mozambique|south-africa|swaziland|tanzania|united-states|zambia|zimbabwe|maragra-sugar-mill|byproduct|downstream-products|manufacturing|product|products|service|social-infrastructure|floods|african-customs-union|infrastructure|operations|michigan
More Insight
© Reuse this South Africa's largest sugar producer the Illovo Sugar group, has completed its rehabilitation of the Maragra sugar mill and agricultural estates in Mozambique, a programme which began when the company acquired a 50% stake in 1997.

The programme also includes the restoration of the damage to the agricultural estate in Mozambique following the floods of February 2000. In addition to the complete rehabilitation of the agricultural estates and the sugar factory, supporting infrastructure has also been redeveloped, including roads, administrative buildings, housing villages, and other social infrastructure.

This has been to the benefit of not only the sugar-producing operation, but also to the surrounding communities which have undergone significant upliftment since the rehabilitation programme began.

The group operates in South Africa and countries including Swaziland, Malawi, Zambia, Mozambique, Tanzania and the US. It produces about two-million tons at 15 sugar factories and has extensive cane estates, which produce more than five-million tons of sugar-cane a year. In general, the group has spent the past 18-months consolidating its operations, ensuring that it is achieving the best return from its existing assets. In Tanzania, the group's operation at Kilomboro has just competed its rehabilitation programme with the production of 73 000 t of sugar, a substantial increase from the less than 30 000 t that were produced before Illovo became involved in the operation in 1998.

Production this year is expected to increase to almost 100 000 t. Swaziland's production for the 2001/2 season was about 180 000 t, while Malawi produced 215 000 t, Zambia 200 000 t, Mozambique 15 000 t, and South Africa recorded a 1 111 000 t production.

In the US, the group is producing sugar from beet at the Monitor Sugar Company, which produced 162 000 t of sugar last season. The factory operates a successful molasses desugarisation plant, which exhausts any remaining sugar content from the molasses, a by-product of the sugar-manufacturing process, thereby enhancing the yearly output of sugar. The operation does not grow its own beets, but signs up local growers every year to provide the mill with its requirements. Monitor produces refined sugar mainly for the local markets in Michigan, with 75% of output directed towards the industrial market and the remainder sold to consumer markets.

The group supplies sugar and downstream products to a considerable range of domestic, regional and export markets in more than 90 countries across the globe. The Southern African Customs Union (SACU) market is important for both the group's South African and Swaziland operations. In the 2001/2 season, South African industry sales into SACU amounted to about 1,6-million tons, of which 81% was refined and 19% was brown.

Of this total, South Africa supplied 1,3-million tons including sugar produced by Illovo, Swaziland 300 000 t and Zimbabwe, and others 74 000 t.

The immediate outcome of the recently concluded Southern African Development Community (SADC) sugar co-operation agreement will be to allow market access into SACU by each SADC net surplus producer on a non-reciprocal basis. This will be based on actual SACU market growth which, in the first year, is expected to be 45 000 t of sugar. In addition, duty-free access into the SACU sugar market for 20 000 t of sugar a year will be available to the non-SACU SADC surplus sugar-producing member states. The total access available to non-SACU members is estimated to be approximately 29 000 t in the 2001/2 season. In the US, Monitor Sugar supplied its entire production to the domestic market. In Malawi and Zambia, Illovo is the primary supplier of sugar to the domestic market with significant sales of sugar to local markets in Swaziland, Tanzania and Mozambique.

In relation to sugar exports, the group has access to preferential markets in Europe and the US, which are supplied by producers with export quotas to these countries at a marked premium to the world free-market price. Downstream production includes furfuryl, furfuryl alcohol, diacetyl, acetoin and 2.3-Pentanedione produced at the Sezela complex, and ethyl alcohol at Merebank and Glendale. Lactulose is also produced at the Merebank plant. While the group's range of downstream products is primarily aimed at export markets, the Merebank and Glendale distilleries remained material suppliers of ethyl alcohol to the South African liquor, pharmaceutical and industrial chemical industries. Relatively small volumes of furfural and its derivatives were also sold domestically. The by-products of the Monitor Sugar factory, which include beet pulp, betaine and concentrated molasses solids, were sold domestically and, in the case of beet pulp, into Canada.

It is focused on its core activities of cane growing, sugar manufacturing and the production of downstream products, and any new service, projects, or technologies are aimed at the group being a global, world-class, low-cost sugar and downstream products company.
Edited by: nkolola halwindi
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Agricultural Engineering News
MAINTENANCE-FREE SKF’s Agri Hub (top) and Agri Hub 1 maintenance-free bearings were on display at this year’s Nampo agricultural trade show
Technology supplier SKF South Africa displayed its agricultural solutions for the first time at its own stand at this year’s Nampo agricultural trade show, which was held in Bothaville, in the Free State, from May 13 to 16. SKF agriculture key accounts manager Charl...
WACKER NEUSON 1150 WHEEL LOADER The Wacker Neuson 1150 wheel loader makes light work of applications requiring an overload height of more than 3 m
Global construction equipment and compact machinery manufacturer Wacker Neuson plans to further expand its stand at next year’s Nampo agricultural trade show, which will be located in the middle of the new expanded area, close to the southern gate. Wacker Neuson was...
AFRICA’S FIRST SEEDCARE INSTITUTE Syngenta’s Wayne van Rensburg (far right) addresses the media and stakeholders during a walk-through visit at the new Syngenta Seedcare Institute, in Brits
Sustainable agriculture company Syngenta’s Africa Middle East Seedcare Institute, in Brits, focuses on new application technology, ensuring that seed treatments provide an effective way of placing crop protection products directly onto the seeds, Syngenta seed care...
More
 
 
Latest News
Updated 3 hours ago Protech Khuthele Holdings on Wednesday said, in a cautionary note to shareholders, that, as the failed company unwound, investigations were ongoing into its affairs. The company provided no indication of the completion date.
Updated 3 hours ago Private equity investors are increasingly becoming more active in Africa’s bid to narrow the $90-billion a year infrastructure funding gap constraining the continent’s growth. This was according to a survey by the Southern African Venture Capital and Private Equity...
Updated 3 hours ago The shortlist of innovations in the Africa Prize for Engineering Innovation was announced on Wednesday, comprising 12 new innovations from seven African countries. The shortlist announced by the UK’s Royal Academy of Engineering (RAEng) included innovations in...
More
 
 
Recent Research Reports
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 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 network, the funding and maintenance of these respective networks, and the push to move road...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
Real Economy Insight: Road and Rail 2014 (PDF Report)
This six-page brief covers key developments in the road and rail industries over the past 12 months, including details of South Africa’s road and rail network and prospects for both sectors.
 
 
 
 
 
This Week's Magazine
The latest TransUnion Vehicle Pricing Index (VPI) contains a number of small, but significant indications that the tide may at last be turning for the beleaguered used car industry. For the third successive quarter, used car inflation has increased on a year-on-year...
The South African new vehicle market is likely to reach around 630 000 units in 2014, down from the 650 000 units recorded in 2013, says Toyota South Africa Motors (TSAM) president and CEO Dr Johan van Zyl. Van Zyl is also president of the National Association of...
Efforts by the Kenya government to increase energy generation by 5 000 MW over the next three years received a major boost following the award of a $2-billion contract to build a coal power plant in Lamu.  Despite allegations of irregular tendering process, the...
Using crafty wordplay on a well-known Internet meme, brilliant South African-born US entrepreneur and businessperson Elon Musk announced that Tesla Motors would not initiate patent lawsuits against anyone who, in good faith, wanted to use its technology. Instead,...
August new vehicle sales declined by 1.4%, to 55 722 units, compared with the same month last year. Assisted by the car rental market, the South African new passenger car market, at 37 953 units, contracted by 1 047 units, or 2.7%, compared with August last year.
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
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
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks