Independent producer Gledhow Sugar Company has relaunched its KwaZulu-Natal mill, offering rare good news to an industry struggling to survive amid cheap imports and lower demand due to a government health tax.
Gledhow, which directly employs about 400 people and supports thousands of smallholder cane farmers, came out of business rescue in early 2025 after being forced to voluntarily commence rescue proceedings in March 2023.
The reopening of the Gledhow Mill follows a R1.8bn expansion project implemented by the company’s new owners as part of a commitment made at last month’s Presidential Investment Conference, the department of trade, industry & competition (DTIC) said.
“The South African sugar industry remains a strategic agro-processing value chain, supporting rural livelihoods, small-scale growers and regional economies, particularly in KwaZulu-Natal and Mpumalanga,” the department said, while acknowledging that the sector faces the risks of potential mill closures that could significantly affect cane growers, rural employment and associated value chains.
“Notwithstanding the challenges faced by the industry, the DTIC and government development finance institutions like the Industrial Development Corporation remain committed to supporting the reopening of the sugar cane mills to preserve jobs and sustain the rural livelihoods in KwaZulu-Natal.”
Gledhow’s business rescue, which followed that of industry giant Tongaat Hulett, came after the company had struggled with problems for years, including the forced closure of its factory due to social unrest in KwaZulu-Natal in July 2021 and damage to its machinery and infrastructure due to flooding in April 2022.
Gledhow said the Russia-Ukraine war has also resulted in an increases in essential supply costs such as coal and other operational inputs, hurting its operating margin and leading to cash flow constraints.
In December 2024, the Competition Commission said it had approved a proposed transaction whereby Mauritian company Maroochi, through Ushukela Holdings, would acquire Gledhow.
The commission said the acquiring firm had made procurement commitments, for three years, in terms of cane requirements from small scale farmers and cane growers and had committed to enter into an empowerment transaction.
Gledhow mills cane procured from KwaZulu-Natal growers and produces brown and refined sugar for sale locally and, to a lesser extent, for export through the SA Sugar Export Corporation.
The trade, industry & competition department is spearheading efforts to avert the liquidation of embattled Tongaat Hulett, which was itself placed under business rescue in 2022 because it was financially distressed and unable to meet its debt obligations.
The sugar industry says imports flooding the local market have compounded its troubles.
According to data from the South African Revenue Service — tracked by SA Canegrowers — in January alone, 24,600 tonnes of deep-sea sugar were imported from countries such as Brazil, India and Thailand.
Imports of sugar accelerated sharply last year, with almost 200,000 tonnes of refined sugar entering the country due to a combination of a low global sugar price, stronger rand/dollar exchange rate and weak South African import tariff protections, SA Canegrowers said.
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