A section of the Mumias Sugar factory. FILE PHOTO | NMG
Mumias Sugar Company plans to revive its stalled water bottling
venture by year-end, after shutting down in 2015, and cut salaries of
its employees.
Chief executive officer Nashon Aseka
said the management is working on an operation that will cut on
overheads and maximise on profits as it seeks to diversify revenue.
Mr
Aseka said under the previous arrangement, the plant could not make
profit as recurrent expenditure was high making Mumias-made Sprinkle
water relatively expensive in the market.
“Plans are
underway to revive the plant; we are working on a structure that will
not be costly as before, which made it difficult for the facility to
generate profit,” said Mr Aseka.
He said employees were previously paid more money than necessary, pointing out Mumias is going to review the salaries.
The struggling miller is fighting to revert to profitability following years of huge losses attributed to mismanagement.
Mumias is also reviving other revenue streams discontinued due to operational challenges.
It
has just resumed production of ethanol after close to six months
discontinuation on lack of molasses to process. The distillery has a
bigger capacity compared with the amount of molasses it produces.
Mumias has been relying on imported molasses to make ethanol but abandoned the imports in July due to high cost.
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