Zambia Sugar to expand cane production further
Published: 07/02/2009, 2:46:31 PM
Zambia Sugar, the country's leading sugar producer, is seeking to acquire new farmlands in Zambia after completing a major expansion project, expected to boost the company's annual sugar production by over 80% next year, according to Dow Jones.
In a statement, Don MacLeod, chairman of Zambia Sugar, said shareholders had approved a rights issue of up to 1,465,000,000 new ordinary shares in a bid to raise capital to facilitate the acquisition of the 9,000-hectare Nanga farmlands in Zambia.
"The matter now awaits the approval of the Securities and Exchange Commission and Lusaka Stock Exchange," he said. Zambia Sugar is majority-owned by South Africa-based Illovo Sugar Ltd.
The company has been implementing a ZAK840 billion (US$170 million) expansion project, which is expected to increase the company's annual sugar production capacity to 440,000 tonnes next year from the current 240,000 tonnes.
The projects involved a 60% plant expansion as well as the expansion of cane plantations into 10,500 hectares of farmlands.
The company has built irrigation canals to cover up to 30 kilometres from the Kafue river. The final phase of the project was completed in April.