Minister Tau moves to save Tongaat Hulett from liquidation

Minister of Trade, Industry and Competition, Parks Tau. Picture: Gallo Images/Luba lesolle Minister of Trade, Industry and Competition, Parks Tau said liquidation should be the last resort for Tongaat Hulett, as government believes the business remains capable of being stabilised and restructured. This follows as the sugar processor battles mounting financial pressure, with close to 163 000 tonnes of cut-price sugar entering the domestic market, intensifying fears of its downfall.

Tau acknowledged that the Sugar Industry remains under pressure due to difficult trading conditions, both domestically and internationally. In a statement on Friday, Tau said the government and other key players will oppose the liquidation of Tongaat Hulett. “Accordingly, the dtic, together with other organs of state, will oppose the liquidation of Tongaat Hulett and will continue to support all lawful efforts aimed at finding a viable and durable resolution,” read the statement.

“Government will intensify its engagements with all stakeholders, including the Industrial Development Corporation (IDC), labour, growers, financiers, investors and affected communities, to explore solutions that ensure the survival of the company and the long-term sustainability of the sugar sector.” He acknowledged that the business is a systemically important player in the country’s sugar value chain. Tau added that liquidating Tongaat Hulett would have disastrous consequences for the sugar industry, especially in KwaZulu-Natal, as it would result in job losses. “The liquidation of the company would have far-reaching and devastating consequences for the sugar sector, particularly in KwaZulu-Natal, where the industry underpins thousands of jobs, small-scale farming livelihoods, rural economies and related downstream industries,” he said. “The collapse of this ecosystem would deepen economic distress in already vulnerable communities and undermine years of investment in transformation, industrial capability and agricultural development.”