Tongaat Hulett, which remains in business rescue, has invested R460m in off-season infrastructure maintenance to ensure its main facilities run smoothly ahead of the sugar season, set to begin in April and continue into early May.
The harvesting season, which kicks off in late autumn or early winter when crops are fully mature, signals the start of processing them into sugar.
The maintenance was completed over the past few months at the Maidstone, Amatikulu and Felixton mills, the central refinery in Durban and the Voermol animal feeds facility.
“As the 2025/26 sugar season begins, we look forward to working closely with our growers, employees and industry partners to build a more resilient and competitive sugar sector.
In addition to the maintenance, almost 40% of the budget was reserved for boiler improvements, enhancing steam efficiency, ensuring consistent factory performance and addressing environmental compliance.
About 30% of the funds were directed towards front-end equipment to improve sugar extraction from cane, while the remaining funds have been invested in back-end processing and service areas of the plants.
Business rescue
“At the same time, the ongoing business rescue process is firmly on track and moving steadily towards substantial implementation.
“The post-commencement financing from the Industrial Development Corporation (IDC) has been fundamental to this success, ensuring the company has remained operational during the business rescue process,” the company said.
“Most critically, the IDC’s funding ensured crucial off-crop maintenance on the mills and refinery could continue over the past three financial years.
“This saw Tongaat Hulett allocating a total of R1.425bn to strengthening its infrastructure, ensuring reliability and efficiency in production,” it said.
According to the group it allocated R472m in 2022/23, R493m in 2023/24 and R460m in 2024/25 for off-crop maintenance and infrastructure improvements.
Tongaat supports more than 14,000 sugar cane growers in Southern Africa. This includes large-scale commercial farmers and small-scale or outgrower farmers, who supply the company with sugar cane for processing at its mills.
With this investment, Tongaat said it prepared to receive deliveries from growers, setting the stage for a strong, productive season.
The company continues to be a key economic contributor in SA, supporting thousands of jobs and farmers in KwaZulu-Natal. Its SA operations contribute about R9.3bn to the country’s GDP each year, directly employing more than 2,600 people and supporting more than 25,500 jobs in the communities around its three mills, refinery and animal feeds plant.
According to the group, Tongaat’s mills process more than two-fifths (43%) of sugar cane sourced from 15,000 black cane growers and co-operative members, who collectively receive about R500m in payments annually.
Top players in the sugar industry include Tongaat, RCL and Illovo, with Tongaat holding about 40% of the market share. The group was founded 130 years ago.
“As the industry navigates ongoing threats including declining global sugar prices, job losses due to the sugar tax and insufficient import tariffs resulting in increased volumes of imported sugar, Tongaat Hulett remains focused on ensuring a seamless and efficient milling process, supporting growers and sustaining the broader sugar community,” the group said.
Tongaat believes these improvements are a key step in securing the long-term sustainability of its operations and successfully implementing the business rescue plan.
“With continued investment in infrastructure, operational efficiencies and strategic partnerships, Tongaat Hulett is well-positioned to drive sustainable growth and innovation in the industry,” it said.
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