The Sunday Mail
Livingstone Marufu
LISTED sugar refinery starafricacorporation will invest US$10 million on the secondary plant upgrade in the next three to five years in a bid to improve efficiency.
In February 2017, the company completed the integration of upgraded and un-upgraded parts of the whole plant. A further upgrade is expected to enable starafricacorporation to increase output and exports.
starafrica CEO Mr Regis Mutyiri told The Sunday Mail Business that, “We are pleased with the complete integration of the plant in February 2017 as that has increased efficiency on the whole plant, as the production levels now exceed demand and the sugar being produced meets all market segment requirements.
“The company seeks to buttress that consolidated performance with the upgrade of the crystallisation side of the plant, which helps to refine sugar into crystals.“This will cost between US$7 million and US$10 million. We hope this will help the company to be more efficient and internationally competitive.
“As a result of the improved efficiency, we are producing surplus sugar for all local market segments and it is our great anticipation that the completion of the crystallisation part of the plant will help us to produce more sugar for the export market so that we can be a force to reckon in Africa.”starafricacorporation’s revenues climbed 75 percent to US$32,6 million in the year ended March 31, driven by improved production at its Goldstar Sugars Harare and profitability at Country Choice Foods.Losses narrowed 42 percent to US$5,8 million on low finance costs, which dropped 53 percent to US$2,6 million.
A new scheme of arrangement agreed to by creditors in November 2016 resulted in a US$2,5 million injection into the business.Production at GSSH increased by 88 percent to 42,822 tonnes, while sales volumes spiked 84 percent to 41 669 tonnes.
Tongaat Hullet in Botswana, an associate company, recorded a profit after tax of US$2,8 million, with starafrica’s share of profits accounting for US$900 000.
Total assets, at US$43,5 million, were lower than liabilities (US$84,5 million).
