DUBAI: A new privately-held sugar refinery in Syria with an annual capacity of 600,000 tonnes started production this week, its chairman said on Monday.
The $90 million refinery, owned by private firm T. Akhras Group, started production at its Middle East Sugar Refinery which has the potential to reach capacity of 1 million tonnes, company chairman Tarif Akhras said in an email to Reuters.
Earlier this year, Akhras said that the annual capacity of 600,000 tonnes would be reached by 2011.
The mill uses raw sugar from Brazil, the world’s top sugar producer. Akhras gave no details on volumes the firm imported.
"The production from the refinery will be targeting the domestic and surrounding markets which include Iraq, Turkey, Lebanon and Jordan," said Akhras.
Special focus will be given to the Iraqi market due to high demand estimated at around 1.3 million tonnes per year, he said.
Syria consumes around 800,000 tonnes of white sugar per year, which is around 40 kg per person a year, said Akhras.
"With our mill coming online, Syria will be able to become self sufficient and move from being a net importer to an exporter of white sugar," he said.
The mill is located in Hasia industrial zone near Homs, 90 km (55 miles) from the coast, near Iraq.
Raw sugar futures closed at a seven-month peak on Friday, while premiums for Thai white sugar are still hovering near a record high above London futures, being quoted at around $200 per tonnes not far from the July record of $250.
