Golden Sugar to produce 100,000MT in first phase, save $50m
The first phase of Sunti Golden Sugar Estate Limited, a subsidiary of Flour Mills Group, will produce 100,000 metric tonnes (MT) of sugar while saving about $50 million in foreign exchange for Nigeria.
This was disclosed by John G. Coumantaros, chairman of Flour Mills Group, during the conglomerate’s annual general meeting held recently in Lagos.
“The first phase of the Group’s investment in local sugar production will produce over 100,000 MT of sugar, create over 15,000 new jobs, generate 10 mega watts (MW) of excess electricity from cane fibre, produce animal feeds and fertilizer from the sugar molasses by-products and save over $50 million in foreign exchange for the nation annually,” Coumantaros said.
Flour Mills’ Golden Sugar is investing $300 million in sugar production in the country. Its site in Sunti is seen as one of the fastest growing projects and is exploring new sites in Kogi and Niger states, according to the Nigerian Sugar Development Council (NSDC).
Nigeria currently consumes 1.49 million MT of sugar but only produces 15,000 MT, leaving a gap of 1.48 million MT, according to the latest update by the NSDC. The country spent $632.72 million in 2014 and $552.54 million in 2015 on sugar importation mainly from Brazil, which shows a huge gap and opportunities in the sector.
“The 16,000 hectares of irrigable land on the banks of the Niger River and the modern designed 4,500 ton of cane per day mill form one of the largest agro-allied investments in Nigeria and gives substance to government’s efforts to reduce dependence on imported sugar,” said Flour Mills chairman.
He said there were ongoing trials at the sugar estate, hinting that the investment would be commissioned early in 2017.
He said the Group’s Agri Palm Limited, with plantations at Ugbogui and Iguiye near Benin City in Edo State, had expanded to 4,000 hectares (ha) of established palm in the first phase of local palm oil production needed to support the upstream needs of the Group’s oil refining operations in Ibadan.
“During the year, negotiations were concluded to acquire an adjacent land area of about 20,000 ha for future developments, giving Agri Palm the potential to be one of the largest oil palm plantations in Nigeria,” he stated.
He further said that the Group operated one of the largest new generation table oil complexes in Africa through its ROM Oil, adding that its recently commissioned downstream plants produced bottled vegetable oil , margarines and spreads.
Flour Mills has metamorphosed into one of the most diversified businesses in Nigeria, having subsidiaries such as Golden Sugar, Agro Allied Farms Sunti Limited, Agri Syrups Limited (Shao Farm) and Thai Farm International Limited, Agri Palm Limited, and Rom Oil Mills Limited. Others include Premier Feed Mills, Kaboji Farms, Golden Fertilizer and Golden Agri Inputs, Bagco, Golden Transport & Logistics, and Apapa Bulk Terminal Limited.
ODINAKA ANUDU