Sale of Maryborough Sugar Mill now in doubt

Fraser Coast canegrowers have been forced to turn to the Isis Central Sugar Mill once more as the sale of the Maryborough factory appears to have hit a hurdle.

Advanced Energies Group Australian Managing Partner Graeme King has spoken about the sugar mill situation.

A breakdown in negotiations surrounding the sale of Maryborough Sugar Mill has forced the region’s canegrowers to look elsewhere to secure their crop’s future.

Confusion reigned on Tuesday after reports emerged the purchase of Maryborough Sugar Mill had fallen through, with mixed messages from the parties involved in the sale.

In July last year, it emerged Advanced Energies Group was negotiating to buy the factory from MSF Sugar.

A new future seemed to beckon for the mill after the organisation announced it intended to purchase the mill and create a bioenergy hub, as well as bring 80 new jobs.

But on Tuesday, the Maryborough Sun posted a leaked letter appearing to be from MSF Sugar to its staff stating the sale was not going ahead and their positions were no longer needed.

When the Maryborough Sugar Mill closed in 2020, growers in the region sent their cane to the Isis Central Sugar Mill.

It had been hoped that the recommissioning of the Maryborough mill would mean the 2023 crush would return to the city.

While AEG refuted reports the sale was dead, canegrowers from the Fraser Coast and Sunshine Coast are negotiating a new contract with the Isis mill, Cameron Waterson, manager at Maryborough Canegrowers said.

MSF Sugar Maryborough Region Mill has hit a hurdle in its sale plans. Photograph by Maggie Zemek

That would mean a new three-year contract with the Childers mill, he said.

“We can’t leave our guys high and dry,” Mr Waterson said.

While there was a very strong sentiment to see the crush return to Maryborough, the local industry could not currently count on that given the current situation, he said.

“It will be a three-year contract with Isis irrespective of what happens with it now.”

The change could have a significant impact on Sunshine Coast growers given the cost of transporting to the Isis mill, Mr Waterson said.

The Chronicle contacted MSF Sugar for comment on the situation.

It is understood that as far as MSF Sugar is concerned, the sale of the mill will not go ahead.

“MSF Sugar’s plan to recommission the sugar mill by mid-2023 was underpinned by contracts with a prospective purchaser governing both recommissioning and the proposed sale of the asset,” a spokesman said.

“However, those arrangements are now at an end.

“Consequently, the recommissioning of the sugar mill is not proceeding at this point in time.”

However, comments from AEG put doubt whether the sale was really dead.

“Nothing like a few good rumours and not understanding the situation,” AEG’s Australian managing partner Graeme King told the Chronicle.

“The fact is that there will be a major corporate delegation from Japan over in a few weeks to tour the region as part of our strategic plan and we are actually discussing internally regarding recommissioning the mill ourselves.

Local canegrowers are unable to have their product processed at MSF.

“Due to this for the staff, the arrangement for employment will be different being under our banner.

“Our intention is a regional solution where all of the mills can mutually support each other and therefore are continuing to push forward with our plans.”

When told MSF Sugar’s position was the sale was not going ahead, Mr King was firm.

“If it was all done and dusted, the delegation wouldn’t be arriving,” he said.

The recommission of the factory started last year for the purpose of being ready to crush cane for the 2023 season.

It comes after canegrowers in the region were forced to transport cane to the Isis Sugar Mill when the Maryborough factory was closed by MSF about 18 months ago.

Under the new ownership, the annual crush was set to return to Maryborough.

At the time, Maryborough MP Bruce Saunders said the company was investing $100 million in the city.

“I’m very happy to have Advanced Energy Group here in Maryborough,” he said.