Tongaat Hulett’s Sugar Mills Lead the Nation in Recovery Performance After Major Turnaround

R1.45 billion in upgrades, a renewed workforce and grower trust drive SA’s leading sugar mills back to the top.

In a powerful symbol of industrial renewal, Tongaat Hulett’s (THL) Maidstone, Amatikulu and Felixton mills have been crowned South Africa’s top performers for sugar recovery this milling season. For a company once on the brink of collapse, the recognition signals a stunning operational turnaround and growing confidence among growers.

Having entered business rescue in October 2022, the sugar giant has since undergone a major revival—powered by R1.45 billion in capital upgrades, a boost in workforce development, and a clear commitment to restoring trust with farmers.

From Crisis to Comeback

The transformation began when the Industrial Development Corporation (IDC) backed Tongaat’s revival with critical funding to overhaul machinery and stabilise operations. But CEO Gavin Dalgleish insists the real magic came from shifting mindsets and investing in people.

“The investments made were not just in machinery, but also in our people. Our teams are now focused on performance rather than constant breakdowns,” said Dalgleish.

The results speak for themselves. Key industry metrics such as recoverable value (the amount of sugar and molasses recovered per ton of cane) and crystal recovery efficiency (the sucrose converted into saleable sugar) show THL outperforming national benchmarks, by a wider margin than any other mill group.

A Win for Growers

The news couldn’t have come at a better time for sugarcane growers, who have long expressed frustration over mill inefficiencies that delay crop deliveries and erode profit margins.

“Any grower would have noticed that the Maidstone mill is certainly performing better than it has in the past decade,” said Pratish Sharma, a senior Maidstone grower and SA Canegrowers representative.
“It gives us confidence to invest in our own farms.”

For growers like Nkosinathi Msweli, chair of the Maidstone Mill Group Board, the turnaround is nothing short of game-changing:

“There is no doubt going forward, Maidstone will be the mill of choice.”

Business Rescue Nears Completion

Growers were recently updated on the near-finalisation of THL’s Business Rescue Plan, including asset sales and payments made to the Lender Group, which consists mainly of South African financial institutions.

While the journey isn’t over, these developments mark a turning point in the company’s efforts to rebuild trust, strengthen supply chains, and drive rural economic resilience.

Challenges Still Loom

Despite the wins, Dalgleish warned of challenges ahead, especially with declining cane volumes and cheap sugar imports that continue to undercut the domestic market.

“We’ve made extraordinary strides, but our industry needs tariff protection to remain competitive,” he said.

Why This Matters

Tongaat Hulett’s recovery isn’t just a win for shareholders, it’s a lifeline for hundreds of cane growers, mill workers, and rural communities who depend on a functional sugar value chain.

It also demonstrates how state-supported industrial revival, when paired with community engagement and skilled management, can rescue a legacy enterprise and restore its place at the top of the industry.

As Dalgleish put it:

“This is real, sustainable change and we’re just getting started.”

{Source: IOL}

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