The Mossman Central Mill has been sold to Australian-owned Mackay Sugar Limited for $25.3 million.

Announced at a shareholder meeting on Monday, Mackay Sugar heads said it has entered into a binding agreement to acquire the milling and related assets of Mossman Central Mill.

Chairman of Mossman Central Mill Bill Phillips-Turner said news of the sale was well received by employees who were briefed at a meeting yesterday morning.

"The main thing is all staff and employees will be offered employment with the new company and all conditions and entitlements will be carried over.

"(The feeling amongst employees) was very positive. It's going to be a much bigger company and there'll be opportunities for employees of this company in the new, bigger company.

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Mr Phillips-Turner said growers would receive a much-needed confidence boost on the announcement of the sale.

"They (Mackay Sugar) are an Australian grower-owned business. They're well capitalised, well managed, and they do have a strong focus on grower relations."   

Mackay Sugar Chairman Andrew Cappello said the acquisition would complement Mackay Sugar’s operations, and contribute to the growth of its core business.

“This is a positive step for Mackay Sugar. It presents further cane expansion opportunities and will increase our sugar production."

Mr Capello echoed the message of Mr Phillips-Turner saying the future looks brighter for Mossman Central Mill after the purchase.

“Under Mackay Sugar ownership there will be confidence in the long-term future of the Mossman Central Mill.

“We will incentivise cane production and expect a 25 per cent increase in cane supply in the first four years.

“The combination of the increased cane volumes and the cost savings in managing the Mossman mill, as part of Mackay Sugar’s operations, are expected to generate greater financial returns for our shareholders,” Mr Cappello said.

Mr Cappello said Mackay Sugar would continue the Cane Supply Agreement that is in place with the Mossman growers for the next three years, and would also offer the forward pricing option and cane development incentives, such as Secure the Future and Plant Loan Scheme, currently available to Mackay growers.

“Similarly, we will be taking on the employment obligations for those engaged in the cane transport and milling operations at Mossman.

“With the acquisition happening close to the start of the 2012 Season (the transaction is expected to be completed on 1 June 2012), we will use the six month crushing period to plan the integration of personnel and operating systems as appropriate.

“I am confident that Mackay Sugar can offer the platform necessary to expand Mossman’s cane supply and, consequentially, increase our raw sugar production to take advantage of the demand for sugar in the Asian region,” Mr Cappello said.

Under the transaction, the milling and assets will be acquired by Mackay Sugar through the issue of approximately $12 million in Mackay Sugar shares and refinancing $13 million in debt.

The shares, which amount to approximately 3.3 per cent of the issued capital of Mackay Sugar, will be held by Mossman Central Mill.

The export sugar produced by Mossman Central Mill will continue to be marketed through Queensland Sugar Limited. However, Mossman Central Mill will retain its food grade bagged sugar operation, which it markets under the brand ‘Daintree Gold’. Daintree Gold will be supplied raw sugar by Mackay Sugar under a commercial agreement.

Pictured: The future of Mossman Central Mill is bright. Image by Jascha Gusmeroli.

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