Continuing its “strategic realignment” of assets, Illovo Sugar announced on 11 February that it had completed the sale of Umfolozi mill to Umovti Transport, a Black economic empowerment company.
The sale was first announced on 23 September 2004, when Illovo Sugar told its shareholders it had entered into an agreement with Umvoti Transport (Proprietary) Limited, a broad-based Black economic empowerment (BEE) company, for the sale of the Umfolozi sugar mill with effect from midnight on 31 March 2005 (and subject to the approval of the Competition Authority).
Umfolozi is located on the north coast of KwaZulu-Natal, South Africa. Annually, the mill crushes approximately 1.3 million tonnes of cane and produces around 150 000 tonnes of sugar, accounting for about 6 percent of South Africa�s annual sugar production. Umfolozi employs 244 people in its milling operations.
In 2004, Illovo Sugar sold the Gledhow mill, refinery and plantation in South Africa to another Black economic empowerment group; and Monitor Sugar, a beet processing plant in Michigan, United States, to a beet grower cooperative.
Source: JSE NEWS SERVICE