Mumias to lease out water bottling plant
Mumias Sugar has announced plans to lease out its water bottling part as part of its recovery plan.
The beleaguered sugar miller is consolidating its operations as it seeks to bounce back from years of losses and slow revenue generation.
Mumias, which commissioned its water bottling plant in 2012, has seen revenues from the business line fall in tandem with poor sugar sales. The water businesses operated under the brand Sparkle.
Sales from the water business fell 37 percent to Sh8.6 million in the six months to December 2015 and has since been shut down.
“Mumias Sugar Company seeks expression of interest from qualified firms with proven track record in operating similar facilities to lease the facilities from Mumias and operate,” Mumias Chief Executive Errol Johnston said in a notice in the dailies.
Mumias has so far received Sh2 billion from the government as part of a bailout deal to revive its operations. The giant miller once controlled 60 percent of the country’s sugar market but has since lost out to new entrants.
Mumias needs an estimated Sh6.2 billion shillings to turn its fortunes around. Talks of a rights issue have been put on hold as shareholders and the government look to other sources of financing for the company.
Mumias posted a half year loss of Sh1.5 billion but is optimistic of bouncing back as it continues implementing its restructuring program.
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