Maryborough Sugar (ASX:MSF) and Bundaberg Sugar JV Approved by FIRB

Sydney, June 16, 2010 AEST (ABN Newswire) - The Maryborough Sugar Factory Limited (ASX:MSF) is now in a position to proceed to the next stage of the planned joint venture with Bundaberg Sugar Limited, a subsidiary of Belgium's sugar mills group Finasucre, after advice from Australia's Foreign Investment Review Board (FIRB).

The 50/50 joint venture will cover sugar cane milling operations of both parties in Far North Queensland state. Maryborough expects to complete the transaction and have the joint venture ready for the 2011 sugar crushing season, says Chief Executive Officer, Mike Barry.

Experts believe that sugar consumption growth in Asia will continue to lead the world due to increasing population, urbanisation and economic growth. Maryborough says the joint venture is critical to its efforts to consolidate sugar milling operations in Far North Queensland and allow investors to derive benefits from the growing demand out of Asia for raw sugar.

Maryborough is Australia's only listed pure sugar company. Its rival CSR Limited (ASX:CSR), which also has building products business, is now looking to demerger its sugar business from other operations.

Australian farmer lobby Canegrowers Chief Executive Ian Ballantyne said on Tuesday he expects "a likely confirmation" of Chinese state-owned Bright Food's proposed A$1.75 billion offer for CSR's Sucrogen unit, after discussions with representatives of Bright Food, CSR and the FIRB in recent weeks. Sucrogen is expected to become a separately-listed ASX company.

Contact

Michelle Liang Asia Business News Asia Bureau Tel: +61-2-9247-4344 Email: michelle.liang@abnnewswire.net