Despite a record year, Tongaat Hulett’s starch and cellulose division was impacted on by load-shedding during the year ended March 31, CEO Peter Staude told Engineering News in a recent interview.

“The starch and glucose operation, which is the only wet-miller in sub-Saharan Africa, is well positioned strategically, while being focused on growing its sales volume, with an enhanced product mix and customer growth prospects into Africa,” the company advised in a statement.

However, dry weather conditions in the new season have resulted in maize prices trading above international levels. The starch operation’s current exposure to these higher prices comprises about 15% of the coming year’s maize requirements.

Therefore, the future success of the starch and glucose operation is underpinned by improving the use of its available capacity and the efficiency of its operations.

During the year under review, the starch opera- tion increased its operating profit to R561-million from the R482-million reported in the prior financial year, with improvements in the sales mix, coproduct recoveries, capacity use and plant efficiencies.

“Domestic sales volumes grew by 4%, with increases in the coffee/creamer, confectionary and papermaking sectors. Working together with customers, success has been achieved in increasing sales of products where demand is growing – locally and exporting into the rest of Africa – and recovering local market from imports,” Tongaat Hulett noted, adding that starch and glucose processing margins were in line with the year ended March 31, 2014.

“We would have done even better if there wasn’t any load-shedding,” he said.

Staude told Engingeering News that the company, which was currently producing electricity through cogeneration at its sugar mills, was keen to participate in the Department of Energy’s potential cogeneration bidding process to generate power for the national grid, the announcement of which was expected soon.

According to its website, the sugar producer is able to cogenerate electricity of about 9 MW for the national grid at the Felixton, Amatikulu and Maidstone mills.

Staude said every sugar mill generated its own power and could, typically, “if it is a major investment”, generate 80 MW.