Strong operational gains made at Tongaat Hulett mid-season

In a mid-season technical review of operations, Tongaat Hulett, which is in business rescue, said that three of its South African sugar mills are outperforming expectations, with the latest performance data showing continuous improvement at the halfway mark of the 2025 sugar season.

Since entering business rescue in 2022, and thanks to funding support by the Industrial Development Corporation, the company has implemented a R1.45 billion rehabilitation programme aimed at stabilising and modernising operations across its Maidstone, Felixton, and Amatikulu mills, as well as its central refinery.

Both Maidstone and Felixton mills have significantly reduced lost production time caused by equipment failure and unplanned breakdowns, marking a clear turnaround in mechanical reliability since the start of business rescue. Maidstone’s Lost Time % has dropped from 33.5% in 2021 to just 12.4%, while Felixton has dropped from 27.1% to 12.9%. These figures represent some of the highest levels of mechanical efficiency recorded at both sites in the past five years. While Amatikulu had a slower start to the season, its performance has improved steadily, showing strong recovery after the first three weeks of operating.

In terms of production efficiency, Sucrose Extraction and Boiling House Recoveries (BHR) have improved across all three mills. This has resulted in more sucrose being extracted from the cane during the front-end process and the recovery of a greater proportion of crystallised sugar at the back end.  At Maidstone, Sucrose Extraction has remained consistently above 95%, while BHR has risen steadily from below 85% in 2021 to nearly 90% this season. Amatikulu has shown similar progress, with BHR up by almost five percentage points since 2023, and sucrose extraction climbing to its highest level in five years. Felixton, which experienced a sharp drop in BHR in 2021, has rebounded strongly, recovering more than seven percentage points to reach close to 90% half-way through the season , while maintaining stable sucrose extraction rates above 95%.

Tongaat Hulett said its Value Recovery (VR%), a critical industry metric, shows that each mill has shown recovery rates that are either meeting or exceeding the 100% benchmark. Where mills achieve VR percentages above 100%, they are effectively recovering more sugar from the cane than the standard industry value assigned to it. This kind of performance reflects both high technical efficiency and value-for-money outcomes for the business and its growers.

At Tongaat Hulett’s central refinery, similar improvements are being recorded. Sugar yields have increased as less sucrose is lost during the melting and purification process, and the refinery’s uptime has significantly improved, indicating stronger mechanical and operational reliability.

CEO Gavin Dalgleish said, “We are seeing strong, measurable improvements across our milling operations, thanks to consistent investment in infrastructure, skills and process optimisation. Our teams are focused on driving efficiency, which ultimately delivers more value to growers, customers and the industry as a whole.” 

This performance is not only reflected in the data, but also in the confidence it’s inspiring among growers.

Dave Bell, the chairperson of the Felixton Mill Group Board, said, “We’ve been extremely satisfied with the mill performance this year. We haven’t had significant delays, and I think the farmers are all happy with the outcome. They’ve done a good job fixing the problem areas, and it’s reassuring to know the mills are now performing at a level that allows them to maximise their yield.” 

Ryan de Matteis, the chairperson of the Amatikulu Mill Group Board, said, “The [Amatikulu] mill has picked itself up and it’s really taken off.It’s been a very good season so far. The mill is running ahead of schedule, which wasn’t expected. Over the past six or seven years, it’s had a lot to prove, and this year, it’s proven it. We always say talk is cheap, the proof is in the crushing, and they’ve turned the corner. It’s going really well.”

Tongaat Hulett remains on track to complete the implementation of its business rescue plan and is preparing for the finalisation of its asset sale transaction with Vision Sugar.

BUSINESS REPORT