9 November 2010:  CANEGROWERS greets new player to Aussie sugar: Wilmar posed to close Sucrogen deal

A conditional approval by the Foreign Investment Review Board (FIRB) will likely see Wilmar International close the deal on CSR’s Sucrogen by month’s end, said peak sugarcane group, CANEGROWERS, today.

An approval by the Overseas Investment Office in New Zealand is the final hurdle in the deal which would see CSR’s $1.75 sale of its sugar business, Sucrogen, to the Singaporean multinational.

CANEGROWERS is encouraged by indications from the owners of Wilmar International that it will upgrade crushing capacity of its mills and is looking forward to helping Wilmar secure more cane supplies to further enhance its investment.

“Now that Wilmar looks set to be part of the industry, we hope they will continue their commitment to current marketing and logistics structures and significant funding of research, both of which benefit the entire industry,” said CANEGROWERS CEO, Steve Greenwood, today.

“CANEGROWERS recognises that Wilmar has made a significant investment in the Sucrogen assets and they have clearly stated that they are in this for the long haul. They will want to see return on their investment, and have sought this investment as they see a bright future for the industry,” he said.

“This is a potentially strategic linkage considering Australian sugar’s strong, and increasing, links to the Asian marketplace. We look forward to continuing to build a robust relationship with the new entrant to secure the future of the Australian sugar industry.”



Link: Link to the Hon Wayne Swan MP’s announcement: http://www.treasurer.gov.au/DisplayDocs.aspx?doc=pressreleases/2010/078.htm&pageID=003&min=wms&Year=&DocType=0