Maryborough Sugar Factory considers Tully merger
Posted
The Maryborough Sugar Factory has taken another step in its vision to expand its sugarcane operations in far north Queensland.
The company has set up a working group with Tully Sugar, south of Cairns, to explore the benefits of a merger.
The Fraser Coast factory recently acquired the Mulgrave Central Mill.
The chief executive of Maryborough Sugar, Mike Barry, says the Tully mill is a large scale mill that has invested wisely.
"We are having discussions with Tully and really to inform the market, so it's really early stages at this state," he said.
"But I guess we're just keen to let people know that we are exploring other opportunities and I think they were keen to let their shareholders know as well."
And there are concerns frost may have damaged cane planting material in the Maryborough area.
Temperatures on Tuesday morning at Maryborough plummeted to almost minus 1, the coldest ever recorded in August.
Hervey Bay also dropped below zero.
Maryborough Sugar Factory's agriculture manager, Trevor Crook, says established cane has not suffered from the frost, unlike last year when there was major damage.
"We've got a big planting coming up this spring, if we can get some dry paddocks to make a start on it, but those planting materials are very critical - it's probably going to take a few more days yet before we'll be able to assess whether frost has a major impact on the sets for this year," he said.
