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June 10, 2009

Ugandan sugar producers invest $100 million to expand production

Uganda’s three largest sugar producing plants are investing a combined $100 million in expansion and power generation. Combined output is projected to increase to 330,000 metric tons by 2010 before climbing to 335,000 metric tons in 2011.Sugar production could rise by as much as 26 percent this year as the country’s three main factories increase capacity. Combined production from the three plants, which produced about 98% of all Uganda’s sugar last year, may rise to 293,541 metric tons from 233,323metric tons in 2008.

Kakira Sugar Works, the largest producer, may increase output by 22 % to 151,400 metric tons, while Kinyara Sugar Ltd., the second largest, may boost production by 35 % to 90,501 metric tons.

Kakira is owned by the Madhvani Group, and Kinyara Sugar Company is 51 % owned by Rai Group, a Kenyan and Mauritius based Company.

Sugar production from the Sugar Corp. of Uganda Ltd., which is jointly owned by the government of Uganda and the Mehta Group, may go up by 23 % to 51,640 metric tons. Uganda consumes over 250,000 tons of sugar annually.

The Independent

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