Infinity sugar deal off
Published:Friday | January 30, 2009 | 5:37 PM
The government has announced that it will not be signing an agreement with Brazilian firm Infinity Bio Energy tomorrow for the divestment of the state owned sugar factories.
The announcement followed confirmation by the company that it would not be able to honour the January 31 deadline for the divestment deal.
While addressing journalists at Jamaica House, Prime Minister Bruce Golding said the company was still unable to come up with the US$25 million it needed to seal the purchase of the five factories.
Among the possible alternatives outlined by Mr Golding is the domestic market, which he said has the potential to provide lucrative support to the ailing sugar industry as well as the regional market.
He said the government would also be considering local private companies that are interested in making a bid for the sugar factories.
He insisted that the Government would honour its obligations to sugar workers adding that redundancy payments would be made by April.
Mr Golding said provision has been made for production to continue.
He noted that arrangements have been made with private factories to accept cane until all factories are in production.