Atiak Sugar Factory
{{Infobox company |
name = Atiak Sugar Factory Limited|
logo = |
type = Private|
slogan = |
foundation ={{start date and years ago|2016}}|
location = Atiak, Amuru District, Uganda|
key_people = Amina Moghe Hersi
Owner/CEO|
num_employees = 1,500+ (2016)|
revenue = |
assets = |
industry = Manufacture & Marketing of Sugar|
products = Sugar|
homepage = |
}}
Atiak Sugar Factory Limited (ASFL), also Atiak Sugar Factory, or Atiak Sugar Limited, is a sugar manufacturing company in Uganda.{{cite web|location=Gulu|title=50 Million Dollar Factory Established In Atiak|date=17 February 2016|publisher=Adwarping.co.ug|last=Administrator|url=http://www.adwarping.co.ug/50-million-dollar-factory-established-in-atiak/|accessdate=20 April 2016|archive-url=https://web.archive.org/web/20160331190509/http://www.adwarping.co.ug/50-million-dollar-factory-established-in-atiak/|archive-date=31 March 2016|url-status=dead}}
Location
The company's headquarters and main factory are located in Gem Village, Pachilo Parish, Atiak sub-county, Kilak County, in Amuru District, in the Northern Region of Uganda. It is approximately {{convert|17|km|0}} north of Atiak. Atiak Town is located approximately {{convert|69|km|0}} north of Gulu, the largest city in Northern Uganda.{{google maps| url=https://www.google.com/maps/dir/Gulu/Atiak/@3.011284,32.3305985,9.25z/data=!4m14!4m13!1m5!1m1!1s0x1771a65c0fc42a27:0xce6ef3d1c3d80e06!2m2!1d32.2880726!2d2.7724038!1m5!1m1!1s0x177224411011831d:0x2924c083b58dad0a!2m2!1d32.1220856!2d3.256846!3e0!5m1!1e1?entry=ttu |
title=Road Distance Between Gulu, Northern Region, Uganda And Atiak Town, Northern Region, Uganda |access-date=13 October 2023}}
Overview
The factory has the capacity to crush {{convert|1650|tonne|kg}} of raw sugar cane daily, producing {{convert|66000|tonne|kg}} of powder sugar annually.{{cite web|url=https://ugandaradionetwork.com/story/pictorial-development-of-sugar-factory-in-amuru-|title=Pictorial: Development of Sugar Factory In Amuru | accessdate=9 January 2018 | date=23 July 2017 | publisher=Uganda Radio Network |last=Labeja |first=Peter |location=Kampala}} Commissioning of the factory was expected in May 2016, with first distribution of sugar planned for June 2017. The factory will employ over 1,500 people and has contracted with over 5,000 out-growers. The owners of the company have established a working relationship with Gulu Women Entrepreneurs Association Limited (GWEAL), whose objective is to develop Northern Uganda.{{cite web |accessdate=19 August 2017 |publisher=Ipsos.co.ke Quoting The EastAfrican (TEA) |location=Nairobi |last=TEA |url=http://www.ipsos.co.ke/NEWBASE_EXPORTS/Standard%20Chartered%20Bank2/151010_The%20East%20African%20Special%20Report_4_a3905.pdf |format=PDF |title=New sugar factory a blessing to farmers in Northern Uganda |date=10 October 2015 |archive-url=https://web.archive.org/web/20170820033706/http://www.ipsos.co.ke/NEWBASE_EXPORTS/Standard%20Chartered%20Bank2/151010_The%20East%20African%20Special%20Report_4_a3905.pdf |archive-date=20 August 2017 |url-status=dead }}{{cite web| url=http://allafrica.com/stories/201511231910.html|date=23 November 2016| title=Uganda: Acholi - Museveni to Buys Hoes, but Land Wrangles Are the 'New Kony'|publisher=The Observer (Uganda) via AllAfrica.com | first=Edris |last=Kiggundu |
access-date=20 April 2016}}
In July 2017, the government of Uganda extended a credit facility of US$17.4 million (approx. USh62.65 billion) to Horyal Investments Holding Company Limited, the owner of Atiak Sugar Factory. The loan, according to Uganda's finance minister will help Horyal to finish construction, procure the sugar-manufacturing machinery and start sugar production. Amina Hersi Moghe, the Chief Executive Officer of Horyal, says the credit will "provide support to sugarcane out growers, offset the balance of procuring machines and restructure their loan period with DFCU Bank". A new commissioning date has been pushed to June 2019.{{cite web| date=23 July 2017 |location=Kampala |url=http://ugandaradionetwork.com.dedi3883.your-server.de/story/govt-extends-ugx-62-billion-credit-to-amuru-sugar-investor-|last=Labeja |title=Government Injects UGX 62 Billion in Atiak Sugar Factory |first=Peter | publisher=Uganda Radio Network | access-date=16 August 2017}}
Construction
The supervising engineering company is Sugarnpower Projects Private Limited, from India. An electricity co-generation plant with initial capacity of {{convert|6|MW|0}}, expandable to {{convert|27|MW|0}}, is incorporated in the design.{{cite web|url=http://www.sugarnpower.com/haryal.html |
title=Projects: Horyal investment Holding Company Limited, Atiak, Uganda |accessdate=9 January 2018 |date=9 January 2018
|publisher=Sugarnpower.com |author=Sugarnpower.com | location=Ghaziabad, India}}
As of July 2018, construction was estimated at 70 percent completed. At that time, Amina Morghe Hersi, had invested an estimated USh272 billion (US$70 million) and UDC had invested USh65 billion (US$17 million). In October 2019, the Daily Monitor newspaper reported that completion was slated for the first quarter of 2020.{{cite web| url=https://www.monitor.co.ug/News/National/stake-Government--hiked-Atiak-Sugar-project/688334-5318920-87152h/index.html | title=Government Increases Stake In Atiak Sugar Project |
date=20 October 2019 |newspaper=Daily Monitor |access-date=21 October 2019 |author=Stephen Kafeero |place=Kampala}} In March 2020, Dr. Amina Moghe Hersi indicated that commissioning of the factory was slated for April 2020.{{cite web|url=https://www.europeanceo.com/business-and-management/atiak-sugar-factory-has-made-green-fields-out-of-battlefields-says-ceo/ |title=Atiak Sugar Factory has made green fields out of battlefields, says CEO |publisher=EuropeanCeo.com |date=10 March 2020 |author=European CEO |access-date=9 June 2020 |location=London, United Kingdom}}
In July 2020, The Independent (Uganda) newspaper reported that commercial production would start in August 2020.{{cite web|url=https://www.independent.co.ug/atiak-sugar-industry-to-begin-production-in-august/ |title=Atiak sugar industry to begin production in August |date=19 July 2020 | author=The Independent |access-date=14 August 2020 |
place=Kampala}}
Production Halt
In March 2022, Atiak Sugar Factory in Amuru District temporarily shut down sugar production over inadequate cane supply. Although the factory was projected to shut down for a short time pending the production of more cane, the current projection points to 2025 when it's likely to resume.{{cite web| work=Daily Monitor | url=https://www.monitor.co.ug/uganda/news/national/atiak-stops-sugar-production-3835632 |title=Atiak stops sugar production |
date=2 June 2022 |author=Teddy Dokotho |access-date=13 October 2023 |location=Kampala, Uganda}}
It is expected that when the factory resumes production in late 2024 or early 2025, it will rely on irrigation and mechanization to boost productivity and be able to crush 1,650 tonnes of raw cane daily. During the 2022/2023 financial year, the Parliament of Uganda approved USh108 billion (approx. US$28.5 million) to establish an irrigation system and procure machinery and mechanize some of the tasks, including land clearing, planting, weeding, harvesting and collection of harvested cane.{{cite web| work=Daily Monitor |date=12 September 2023 |url=https://www.monitor.co.ug/uganda/news/national/atiak-sugar-factory-acquires-machines-to-improve-productivity-4366348 | title=Atiak Sugar factory acquires machines to improve productivity |author=Jesus Okello Ojara |access-date=26 January 2024 | location=Kampala, Uganda}}
Ownership
The company is a subsidiary of Horyal Investment Holding Company Limited, owned by Amina Moghe Hersi, a female Kenyan entrepreneur of Somali descent.{{cite web|date=23 March 2016 |first=Julius | url=http://www.monitor.co.ug/News/National/Prof-Latigo-faults-Amuru-leaders-investments/-/688334/3129652/-/xokyd2z/-/index.html |last=Ocungi |title=Professor Latigo faults Amuru leaders on investments |access-date=20 April 2016 |location=Kampala |
newspaper=Daily Monitor}} In May 2018, the government of Uganda, through the Uganda Development Corporation (UDC), took a 10.1 percent ownership in Atiak Sugar Factory, for an investment of USh20 billion (approximately US$5.5 million).{{cite web|access-date=23 May 2018 |date=24 May 2018
|url=http://www.monitor.co.ug/News/National/Stalled-Atiak-sugar-factory-leaves-3-500-farmers-distress-/688334-4576976-djr436/index.html |title=Stalled Atiak sugar factory works leaves 3,500 farmers in distress |newspaper=Daily Monitor | first=Stephen |last=Kafeero |location=Kampala}}
In July 2018, UDC invested another USh45 billion (approx. US$11.6 million), thus raising its stake in the factory to 32 percent.{{cite web|access-date=6 July 2018 | url=https://ugandaradionetwork.com/story/installation-of-atiak-sugar-factory-finally-set-to-resume |title=Installation of Atiak Sugar Factory Set to Resume |date=29 June 2018 |location=Kampala |publisher=Uganda Radio Network |first=Peter |last=Labeja}}{{cite news| url=https://www.agra-net.com/agra/international-sugar-and-sweetener-report/sugar-news/cane-sugar/uganda---government-injects-more-funds-into-atiak-sugar-mill-to-complete-construction--1.htm |title=Uganda: Government injects more funds into Atiak sugar mill to complete construction |date=2 July 2018 |access-date=6 July 2018 |publisher=Agra-net.com |author=Sugar News |location=London}} In April 2019, the company requested another USh 24 billion (approx. US$6.5 million), in funding to complete construction of offices and staff houses, with opening planned for the second half of 2019. This would bring the governments shareholding to 44 percent.{{cite web|date=25 April 2019 | url=https://www.newvision.co.ug/new_vision/news/1499176/government-invest-sh24b-atiak-sugar-factory |title=Government To Invest More Sh24 Billion In Atiak Sugar Factory |access-date=30 May 2019 |newspaper=New Vision |author=Henry Sekanjako | location=Kampala}}
In September 2023, Ugandan print media indicated that Horyal Investments owned 51 percent and the Uganda Development Corporation owned 49 percent of the company shares.{{cite web|url=https://www.independent.co.ug/govt-starts-delivering-machines-to-atiak-sugar-factory/ |title=Govt starts delivering machines to Atiak sugar factory |date=12 September 2023 |work=The Independent (Uganda) (TIUG) |
access-date=26 January 2024 |author=TIUG |location=Kampala, Uganda}}
class="wikitable sortable" style="margin: 0.5em auto"
|+ Atiak Sugar Limited Stock Ownership ! Rank !!Name of Owner!!Ownership (July 2018)!!Ownership (May 2019)!!Ownership (September 2023) | ||||
1 | Horyal Investments Holding Company Limited | 68.0 | 56.0 | 51.0 |
2 | Uganda Development Corporation | 32.0 | 44.0 | 49.0 |
Total | 100.00 | 100.00 | 100.00 |
Co-generation
When the factory opens, it is expected to have crushing capacity of 1,650 metric tonnes of sugarcane daily with co-generation of 6 megawatts of electricity. Future production is expected to increase to 3,500 metric tonnes of sugarcane daily with co-generation of 27 megawatts.{{cite web| url=http://ugandavanguard.com/business/government-buys-shares-in-atiak-sugar-factory/ |title=Government Buys Shares In Atiak Sugar Factory |publisher=Uganda Vanguard Online |author=Stephen Wandera |date=12 December 2018 |access-date=12 February 2019 | location=Kampala}}
See also
References
{{reflist}}
External links
- [https://www.monitor.co.ug/News/National/setting-fire-sugarcane-plantations-Atiak-Sugar-Works-Ltd/688334-5460578-format-xhtml-g70cjxz/index.html Stop setting fire on Atiak sugarcane - Acholi chief] As of 18 February 2020.
- [https://nation.africa/kenya/news/how-uganda-overtook-kenya-in-sugar-cane-production-1124078/ How Uganda Overtook Kenya in Sugar Cane Production] As of 2 July 2020.
- [https://ugandaradionetwork.net/story/pictorial-development-of-sugar-factory-in-amuru-/ Pictorial: Development of Sugar Factory In Amuru] As of 23 July 2017.
{{Authority control}}
{{Amuru District}}
{{coord|03|25|05|N|32|07|52|E|display=title}}
Category:Food and drink companies established in 2016
Category:2016 establishments in Uganda
Category:Northern Region, Uganda
Category:Sugar companies of Uganda