Speaking at Ilovo Sugar Ltd’s annual general meeting this week, Don MacLeod, the South African group’s chairman, confirmed its strong cash generation and a healthy balance sheet position it well to achieve its goal of becoming self-sufficient in its own power requirements through cogeneration.

He confirmed that last year’s commissioning of the cogeneration plant, which was part of a major factory expansion project at Ubombo in Swaziland, was a significant milestone for the group.

The project will not only increase sugar production but also generate sufficient electricity to cover all of Ubombo’s power requirements and provide for the export of surplus electricity into the national grid.

The amount of electricity supplied into the national grid during the 2011-12 year exceeded the annual minimum contractual commitment.

The Swaziland expansion provides a sustainable sugar/cogeneration production model that can be used in existing operations or at new sugar projects as appropriate, said MacLeod.

Ilovo Sugar is Africa’s biggest sugar producer and has extensive agricultural and manufacturing operations in six African countries.

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