Kantale sugar factory revival rings bells of hope after 30 years
Location of the production facility.
The 30 year long period of delay in the sugar production at the Kantale factory is set to end soon after the handing over of land, property, services, etc (leases) to MG Sugars Lanka Private Limited by the government, company officials divulged.
The final leases for the Factory are to be signed and handed over to MG Sugars to resume sugar production process
This process should be completed before Christmas this year enabling the official team to initiate land preparation and sugar cane cultivation as early as January 2021, they said.
This is crucial in order to achieve the set target date of commissioning in July 2023 as the President is determined and already directed the officials to commence the sugar production operations, an official of the company told the Business Times.
Further delay in handing over the leases will delay the project till 2024, which will increase the project costs considerably, he added.
MG Sugar is owned in partnership by the Government and investors Mousy Salem and Mendel and a world-class team is engaged in the whole process. of the Kantale sugar factory revival.
At present, these internationally recognised industry experts are poised and ready to mobilize he said adding that the investors have developed all engineering designs, the teams are instructed, and the plans are set for implementation.
The team consists of Booker Tate who has years of experience in the sugar industry, Grupo TS as the industrial Engineering, procurement, and construction (EPC) and operation and maintenance contractor ( O&M )Contractor,Netafim as the EPC, and O&M contractor for the agricultural activities
The financial execution is led by Fieldstone who have developed all financial models and IM’s for the project, in conjunction with Internationally acclaimed law firm Hogan Lovell developed all project related contracts, and in conjunction with Matrix Global Services,
The factory will utilise leading European equipment and Israeli technology for the agricultural and irrigation works. The introduction of a state-of-the-art drip irrigation system into Sri Lanka will enable the project to save on water usage.
A 27.5 MW maximum capacity cogeneration plant from biomass will be set up to add 10 MW to the National Grid.
This factory will produce 80,000 tons of sugar per annum to the local market, resulting in foreign exchange savings of approximately US$50 million per annum in payments for imported sugar.
The project will create 3,500 direct employment opportunities and a further 3,000 farmer families will be benefited under this initiative.
To fulfill proposed expansions, plans to train a cadre of skilled workers will be put in motion, and 10,000-15,000 indirect employment opportunities will be created countrywide.
In addition ethanol too will be produced at the factory, once again helping to reduce ethanol imports thus saving foreign exchange.
The multi-functional project will facilitate the Mahaweli Authority to develop the “Janaranjana Pumping Project” which will benefit water supply to 30,000 ha of agricultural land new development areas, in Medirigiriya and Kaudulla.