Trade, Industry and Competition Minister Parks Tau has welcomed the withdrawal of the liquidation proceedings of sugar milling company Tongaat Hulett and praises stakeholders who worked to secure a viable path forward for one of South Africa's most important agro-industrial companies.
Tongaat Hulett is a strategic asset within South Africa's agricultural and manufacturing sectors. Its operations support thousands of direct and indirect jobs and underpin the economic wellbeing of communities across KwaZulu-Natal and other parts of Southern Africa.
The prospect of liquidation posed serious risks not only to workers and growers, but also to suppliers, transport operators, small businesses and the broader economy, he says.
The withdrawal of the liquidation application represents a significant milestone in safeguarding about 250 000 jobs, protecting rural livelihoods, preserving productive industrial capacity and securing the future of the sugar value chain.
Government welcomes the progress made by stakeholders in reaching an outcome that creates an opportunity for the business to continue operating while longer-term restructuring and stabilisation measures are implemented.
