Another KZN-based sugar mill enters business rescue
The South African Canegrowers Association says it's very concerned about operations at Gledhow sugar mill, which's been placed under business rescue.
The Stanger-based mill services 245 growers, who produce 6% of the industry's total output.
The growers have employed over 3 000 workers from surrounding communities.
SA Canegrowers' chairperson Andrew Russell says the move signals an acute crisis in the sugar industry, after Tongaat Hulett also entered business rescue in October.
READ: IMF warns South Africa economy risks stagnation
He says sugar milling operations on the KZN north coast face uncertain times.
"As the new season commences on 1 April 2023, Gledhow's supplying growers now face similar uncertainty as to whether the mill will operate normally and whether it will be able to make payment for sugarcane delivered and meet its financial obligations to the industry.
"Given the importance of the mill, SA Canegrowers is therefore engaging extensively with the mill management, the South African Sugar Association, and with its grower members. We will make every effort to support Gledhow supplying growers, and to protect the livelihoods the industry supports."
