Latest news with #GavinDalgleish
IOL News
10 hours ago
- Business
- IOL News
Strong operational gains made at Tongaat Hulett mid-season
Tongaat Hulett, which is in business rescue, said that three of its South African sugar mills are outperforming expectations. In a mid-season technical review of operations, Tongaat Hulett, which is in business rescue, said that three of its South African sugar mills are outperforming expectations, with the latest performance data showing continuous improvement at the halfway mark of the 2025 sugar season. Since entering business rescue in 2022, and thanks to funding support by the Industrial Development Corporation, the company has implemented a R1.45 billion rehabilitation programme aimed at stabilising and modernising operations across its Maidstone, Felixton, and Amatikulu mills, as well as its central refinery. Both Maidstone and Felixton mills have significantly reduced lost production time caused by equipment failure and unplanned breakdowns, marking a clear turnaround in mechanical reliability since the start of business rescue. Maidstone's Lost Time % has dropped from 33.5% in 2021 to just 12.4%, while Felixton has dropped from 27.1% to 12.9%. These figures represent some of the highest levels of mechanical efficiency recorded at both sites in the past five years. While Amatikulu had a slower start to the season, its performance has improved steadily, showing strong recovery after the first three weeks of operating. In terms of production efficiency, Sucrose Extraction and Boiling House Recoveries (BHR) have improved across all three mills. This has resulted in more sucrose being extracted from the cane during the front-end process and the recovery of a greater proportion of crystallised sugar at the back end. At Maidstone, Sucrose Extraction has remained consistently above 95%, while BHR has risen steadily from below 85% in 2021 to nearly 90% this season. Amatikulu has shown similar progress, with BHR up by almost five percentage points since 2023, and sucrose extraction climbing to its highest level in five years. Felixton, which experienced a sharp drop in BHR in 2021, has rebounded strongly, recovering more than seven percentage points to reach close to 90% half-way through the season , while maintaining stable sucrose extraction rates above 95%. Tongaat Hulett said its Value Recovery (VR%), a critical industry metric, shows that each mill has shown recovery rates that are either meeting or exceeding the 100% benchmark. Where mills achieve VR percentages above 100%, they are effectively recovering more sugar from the cane than the standard industry value assigned to it. This kind of performance reflects both high technical efficiency and value-for-money outcomes for the business and its growers. At Tongaat Hulett's central refinery, similar improvements are being recorded. Sugar yields have increased as less sucrose is lost during the melting and purification process, and the refinery's uptime has significantly improved, indicating stronger mechanical and operational reliability. CEO Gavin Dalgleish said, 'We are seeing strong, measurable improvements across our milling operations, thanks to consistent investment in infrastructure, skills and process optimisation. Our teams are focused on driving efficiency, which ultimately delivers more value to growers, customers and the industry as a whole.' This performance is not only reflected in the data, but also in the confidence it's inspiring among growers. Dave Bell, the chairperson of the Felixton Mill Group Board, said, 'We've been extremely satisfied with the mill performance this year. We haven't had significant delays, and I think the farmers are all happy with the outcome. They've done a good job fixing the problem areas, and it's reassuring to know the mills are now performing at a level that allows them to maximise their yield.' Ryan de Matteis, the chairperson of the Amatikulu Mill Group Board, said, 'The [Amatikulu] mill has picked itself up and it's really taken been a very good season so far. The mill is running ahead of schedule, which wasn't expected. Over the past six or seven years, it's had a lot to prove, and this year, it's proven it. We always say talk is cheap, the proof is in the crushing, and they've turned the corner. It's going really well.' Tongaat Hulett remains on track to complete the implementation of its business rescue plan and is preparing for the finalisation of its asset sale transaction with Vision Sugar. BUSINESS REPORT
The Citizen
25-07-2025
- Business
- The Citizen
#MandelaDay: Sweet acts of kindness at Darnall Country Club
Kindness was on the menu at Darnall Country Club, where Tongaat Hulett served meals, warmth and goodwill to senior citizens in celebration of Mandela Day last Friday. The elderly were treated to breakfast, lunch, sugar packs, blankets and hats. Reflecting on this year's Mandela Day theme, 'It's still in our hands to combat poverty and inequity,' Tongaat Hulett CEO Gavin Dalgleish said the company had a long and consistent record of making positive contributions to society, the environment and its stakeholders. 'Tongaat Hulett will continue ensuring the sugarcane farming value chain helps rural communities to achieve meaningful social impact and economic participation,' said Dalgleish. Maidstone Mill Group Board chairperson Nathi Msweli expressed gratitude to Tongaat Hulett and the grower communities for honouring Madiba's legacy through acts of compassion and kindness. Stay in the loop with The North Coast Courier on Facebook, X, Instagram & YouTube for the latest news. Mobile users can join our WhatsApp Broadcast Service here, or if you're on desktop, scan the QR code below.
IOL News
27-06-2025
- Business
- IOL News
Tongaat Hulett's journey to recovery: new leadership and challenges ahead
Gavin Dalgleish was appointed as CEO with effect from 1 June 2025, marking a significant step in the final phase of implementing the approved Business Rescue Plan and setting the stage for a seamless transition of Tongaat Hulett's business, assets, and people to Vision, the consortium acquiring the group. Image: Supplied Tawanda Karombo Tongaat Hulett, the beleaguered South African agro-processing firm, is poised to emerge from the shadow of its tumultuous past, thanks to new leadership and a significant restructuring initiative. Gavin Dalgleish, the company's new CEO, has expressed optimism about the path towards stability following a protracted period marked by scandals and heavy debt that once threatened its existence. Dalgleish was appointed as CEO with effect from 1 June 2025, marking a significant step in the final phase of implementing the approved Business Rescue Plan and setting the stage for a seamless transition of Tongaat Hulett's business, assets, and people to Vision, the consortium acquiring the group. In a recent interview, Dalgleish detailed the pivotal changes occurring at Tongaat Hulett, which has been under business rescue since an accounting scandal left it with debts exceeding R8 billion. Following the acquisition by the Vision Group Consortium, led by seasoned African investors Robert Gumede and Rutenhuro Moyo, the company is now focusing on debt recovery, having recently settled its obligations with creditors. 'We need to restore the faith of our employees, we need to restore the faith of our creditors and all our stakeholders that we're now functioning as a business again, and we're a good place and a reliable partner to do business with,' Dalgleish told Business Report in an interview on Thursday. Tongaat Hulett, however, will still be up against headwinds buffeting the South African and regional economic landscape. For example, upon exiting business rescue, the company will be up against rising imports of cheap sugar and currency volatility. For Dalgleish, the company's recovery will not be quick paced. In fact, he expects the rest of this year to be tougher for Tongaat Hulett. 'Like any other business, we're facing headwinds of a strengthening rand, reduced world market prices of sugar, and imports that flow from that. So for South Africa we're expecting this year to be a slightly tougher year,' he said. Tongaat and the Vision Group principals recently went on a roadshow to meet stakeholders in KwaZulu Natal, Zimbabwe and Mozambique. During those trips, the company explained to stakeholders the new approach to doing business. Dalgleish said together with the Vision principals, the company had sought to 'win back their (stakeholders) trust' and confidence as investors and as a business. Tongaat employs 2 400 people and 25 000 others across the extended value chain. Dalgleish said he felt overwhelmed by the responsibility he carries on behalf of the employees, value chain stakeholders and others linked to the company. He said sustaining jobs for those employed and impacted by the company was a top priority under his leadership. 'I'm excited by the challenge and the opportunity, as I said, I'm pleased with the the resilience of the people and the business that we found. And because of the social economic impact of the business, I have a great sense of responsibility.' After fully settling outstanding obligations to the company's lenders as of 9 May 2025, the finalisation of the asset transfer to Vision Group 'is expected imminently,' the company said at the beginning of this month, underscoring 'Tongaat Hulett's progress toward financial and operational' recovery. Last year, creditors in Tongaat voted in favour of a business rescue plan put forward by Gumede's investment consortium, Vision. This was after an accounting scandal rocked Tongaat Hulett, with the company tail-spinning into a debt of R8.2 billion, prompting shareholders to adopt an amended business rescue plan. Tongaat Hulett is envisioned to continue playing critical roles in the economic fabric of Southern Africa under its new ownership. In South Africa, the business 'remains a cornerstone of the sugar industry, sourcing cane from 15 000 small-scale growers – thereby sustaining local farming communities, and underpinning numerous rural economies,' especially in the KwaZulu-Natal province. In Zimbabwe, Tongaat Hulett owns two operating businesses, Triangle and separately listed Hippo Valley Estates. Triangle said recently that it was facing operational challenges that had forced it to retrench employees after cost cutting measures failed to yield a respite. BUSINESS REPORT
