- Operations were stalled on the 14th of February due to expensive raw sugar supplies
- The Group has resolved pricing mechanisms with the supplier
- About Star Africa
Harare- Sugar producer, Star Africa Corporation has reviewed that the refinery at Goldstar Sugars resumed operations on Sunday 19th of February 2023 in a circular posted by the Group today.
In a circular dated 14 February 2023, the Group hinted about shutting down its sugar refining plant at Goldstar following a significant raw sugar price increase and untenable trading conditions with the supplier.
However, in its latest published circular, the Group revealed it has resolved the raw sugar pricing and the trading terms with its supplier.
“GSS has resumed the supply of granulated white sugar to the market and will continue to do so for the foreseeable future while customers have been advised of this development and the resultant refined sugar prices,” the Group said.
During its latest Q3 trading update for the FY2022, the Group saw its sugar production at Goldstar down by 0.4% due to power and steam supply constraints which reduced throughput.
Due to electricity challenges (despite the Group’s installed 11kVA dedicated electricity line and a 1,000kVA generator), the latest raw sugar hikes and a volatile environment infested by rapid currency depreciation, policy slippages and lack of adequate foreign currency, we expect the Group to report reduced earnings and production targets for the year to end in March 2023.
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