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Mauritian Sugar Production Takes a Hit on Plans to Shut Refinery

Mauritian Sugar Production Takes a Hit on Plans to Shut Refinery

(Bloomberg) --

Mauritius’ biggest sugar producer Alteo Ltd. will close its sole refinery following a reduction in raw sugar, the latest sign of the industry’s decline on the Indian Ocean island.

The company said in a statement it will focus instead on developing production of specialty sugars, carrying a higher premium on the world market. The closing will leave the island with just one refinery to transform raw sugar to white.

Cane growth and sugar production is the biggest agricultural activity in Mauritius. Yet in 2020, output is forecast to decline 6% to 310,000 tons compared with a year ago, according to the Mauritius Chamber of Agriculture.

The company said its focus on specialty sugar is in line with the national strategy to boost output of high value-added product. It also cited a reduction in land for cane production in its decision. The island’s soon-to-be remaining refinery is owned and managed by Omnicane Ltd.

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