Chinese company to acquire sugar factories in Jamaica

Chinese based company, Complant International Sugar Industry Company Limited (CISICL) is to acquire the remaining three government owned sugar factories at the end of the current sugar crop.

Minister of Agriculture, Dr Christopher Tufton, told the House of Representatives this afternoon that Cabinet yesterday approved the recommendation of the Sugar Company of Jamaica, for CISICL to take over the Frome, Moneymusk and Bernard Lodge factories.

CISICL was among four entities which submitted proposals for the remaining state owned sugar factories.

The others were Energen Development Limited out of the US, Jamaican based Everglades Farms Limited and Integrated Agriculture and Energy in the US.

The latest divestment follows the acquisition of the St Thomas and Trelawny sugar estates by Golden Grove Sugar Company and Everglades Farms last July.

CISCIL will acquire the three factories and lands for US$9 million or JA$774 million and is expected to lease about 18,000 hectares of cane lands for US$35 per hectare per annum, over a period of fifty years and renewable for another 25 years.

According to Dr Tufton, the country is expected to gain revenues of $828.6 million in the first year of the agreement and thereafter $54.6 million per annum in lease payments.

Dr Tufton says CISICL will also be investing US$180 million or JA$15.5 billion to construct a refinery.

He says the company also has plans to produce ethanol from cassava in Jamaica.

source: go-jamaica