Jamaica sells two sugar factories for US$2 million

KINGSTON, Jamaica, June 25, 2009 - Two of the factories owned by the failed Sugar Company of Jamaica (SCJ) have been sold for a combined price of US$2 million - one to a group of American businessmen and the other to a local, family-owned company.

The Bruce Golding Cabinet approved the divestment of St Thomas Sugar Company - formerly Duckenfield - to a United States consortium comprising Fred M Jones Estate Limited and Seprod Limited, while the Trelawny Sugar Company has been sold to Everglades Farm.

The purchase price for the Trelawny Sugar Company factory lands, comprising 33.8 hectares with factory and other buildings, was US$1.5 million. The price for St Thomas Sugar Company's factory and 10.5 hectares of surrounding lands was set at US$500,000.

"In both instances the sugar factories and the attendant facilities are being sold and the sugar cane lands are being leased for a period of 50 years, renewable for another 25 years," said Minister of Agriculture and Fisheries, Dr Christopher Tufton.

He added that both entities will undertake critical capital expenditure to modernise and expand or improve the factory facilities.

"In the case of Trelawny, the commitment is for a US$6.2 million expansion and modernisation programme over the next five years. For St Thomas, the entity proposes to invest US$2.74 million over the next two years," Tufton explained.

The two will also have to commit to maintain at least 60 per cent of the leased lands, suitable for sugar cane cultivation, in the production of sugar cane or sugar related products for at least 15 years. They will be entitled to tax incentives commensurate with the size of their investments.

Meanwhile, negotiations for the sale of other sugar companies are continuing, as government continues its efforts to divest the industry. Tufton said that within the next two weeks, Cabinet will consider some more recommendations.

"At the end of the divestment process, we expect a robust industry with exciting prospects not only for private sector players, but for cane farmers, sugar workers and their communities," the Agriculture Minister said. (adapted from JIS)

SOURCE: caribbean360