The Maryborough Sugar Factory Ltd
(ASX:MSF) and Bundaberg Sugar Ltd have confirmed a final joint venture agreement for sugar cane milling facilities in far North Queensland.
Maryborough says the venture is due to commence operations from December this year, and will be fully operational for the 2011 crushing season mid next year.
The company will have a call option to buy Bundaberg’s 50% interest in the joint venture for an additional $50 million, with Maryborough already having transferred a non refundable $20 million as consideration.
Total Maryborough sugar production will increase from 250,000 to 325,000 tonnes per annum.
CEO Mike Barry says the Australian sugar industry continues to undergo massive change and the joint venture will play a critical role in helping both companies to compete on local and international markets.
Maryborough Sugar Factory reported a loss for the year ending 30 June 2009.
