Published: 23 January 2014

SUGAR processor Starafrica corporation says it will resume sugar refining operations in Harare in May this year after the commissioning of its Gold Star Sugar Harare plant.

In a statement, the firm said civil works had already been completed at the plant ready for assembly and installation of the new equipment which will be completed by April this year.

"It is now projected that refining operations will resume in May 2014 when the new plant has been commissioned," the firm said.

The upgraded plant is aimed at halting Starafrica's loss-making streak due to old and inefficient equipment at the company's sugar refinery.

It will increase production capacity from the current 300 tonnes per day to 600 tonnes per day resulting in improved sugar yield, quality and operational efficiencies, in addition to bringing the latest sugar refining technology and international standards at the plant.

As a result of viability challenges starafrica corporation could not meet its financial obligations, prompting creditors and financiers to contemplate attaching the troubled firm's assets.

To prevent this, directors of the company proposed a scheme of arrangement overwhelmingly endorsed by lenders and creditors at a creditors' meeting held in Harare on June 5 this year.

The scheme provides a six months moratorium on all debts. Part of the scheme of arrangement was the proposed disposal of Starafrica's 33 percent investment in Tongaat Hulett Botswana and Blue Star Logistics.

The firm said it expects the disposal of THB to be completed by April this year.
- bh24

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