Zambia Sugar Plc (LuSE: ZSUG), has announced a major investment project at its Nakambala sugar operations at Mazabuka scheduled for completion in 2016.
The project includes the construction of a modern refinery to more than double current annual refined sugar production capacity to around 100,000 tons and increase annual sugar production capacity from 420,000 to 450,000 tons.
The project cost amounts to more than ZMW 522 million (USD 82 million), funded by debt finance largely sourced from within Zambia itself and from Zambia Sugar’s own available cash resources.
Commenting on the expansion investment, the newly appointed Zambia Sugar Managing Director Rebecca Katowa said: “The company’s strategic plan focuses on diversification through value addition to its core sugar products as key to achieving sustainable growth. This project, together with our previous significant expansion of the agricultural and factory operations serves as growing evidence of this strategy.”