Mumias Sugar Company to close down water plant over losses
What you need to know:
- “The people we want punished for killing the company are powerful and are always hitting back every time we go for them,” he told journalists after the AGM.
- “Mumias will get back to its old, glorious days even though people who brought the company down are hitting back,” said Mr Ameyo
- “I can tell you ethanol is the next big thing. That is why we are keen not to leave it out,” Mr Ameyo said.
Struggling Mumias Sugar Company may close its water bottling plant to cut down on costs.
This will see Sprinkles drinking water leave the market after only three years.
Board chairman Dan Ameyo who spoke during the annual general meeting on Friday said the miller does not earn much from the water plant.
The company also announced it will suspend all its corporate social responsibility projects until it is back on its feet.
Shareholders approved a Sh4.6 billion rights issue during the meeting at Tom Mboya Labour College, Kisumu.
Mr Ameyo asked farmers, contractors and other stakeholders to be patient as they work to revive the company.
“We need to evaluate our business outlets and do away with those that are not profitable. That is why we want to dispose off the water project,” Mr Ameyo said.
ETHANOL
The company launched the water plants in 2012 hoping to increase profits.
Production of ethanol is however still viable. This project started in 2009, stopped in 2012 for maintenance before resuming.
“I can tell you ethanol is the next big thing. That is why we are keen not to leave it out,” Mr Ameyo said.
“The board will form a committee to look into the welfare of farmers.”
Mr Ameyo said the company can no longer sponsor corporate projects because of its current financial woes.
“We will only do what will sustain the company and the corporate projects must be put on hold until we regain our footing,” said Mr Ameyo.
He urged stakeholders to support ongoing efforts to revive the company and exuded confidence the miller will be profitable again.
“Mumias will get back to its old, glorious days even though people who brought the company down are hitting back,” said Mr Ameyo
“The people we want punished for killing the company are powerful and are always hitting back every time we go for them,” he told journalists after the AGM.
Mrs Alice Naliaka, a farmer, accused the company’s board of directors of failing to address challenges facing sugar cane growers.
