SANTA CRUZ, St Elizabeth — Industry, Commerce and Agriculture Minister Audley Shaw says he is waiting to be “properly briefed” before commenting on reports that the Appleton sugar factory in Siloah, northern St Elizabeth, may cut staff or even shut down because of heavy losses.

“Until I am properly briefed I can’t comment,” was Shaw’s short answer when reached by phone yesterday.

A release from J Wray & Nephew Ltd (JWN), circulated Wednesday, said it had started consultations with trade unions and other stakeholders as a result of heavy losses experienced by its subsidiary Appleton, which produces the world-famous Appleton Rum.

The news release said the onset of the COVID-19 pandemic, which led to the closure of bars and “other routes to market”, had made an already bad situation worse.

The company said it was consulting with stakeholders regarding “the way froward”.

Yesterday, J Wary & Nephew Chairman Clement “Jimmy” Lawrence told the Jamaica Observer that reports claiming that the company is moving out of sugar are premature as no decision has yet been made. (See story on Page 8).

The J Wray & Nephew Group is owned by the Italian alcoholic spirits giant Campari Group.

A well-placed source, who declined to be named, told the Observer yesterday that while “they [Campari Group] may not have come to a final decision yet, they may cut staff or shut down the factory completely”.

Wednesday’s release from J Wray & Nephew said: “The negative impact of the novel coronavirus (COVID-19) on the commercial operations of J Wray & Nephew Ltd (JWN), coupled with sustained losses from its sugar business, has forced the company into consultation about the future of the Appleton sugar operations in St Elizabeth. The company is reporting significant losses from its 2020 cane and sugar production.

“This is not an anomaly as Appleton Estate has sustained heavy sugar losses for well over a decade. The losses on sugar have become unsustainable, given the company’s tightening fiscal situation.

“The fallout from the COVID-19 pandemic is still being tallied and is likely to continue into 2021. The company has indicated that it will commence the consultation process with its unions and other stakeholders on the way forward.”

In August 2018, J Wray & Nephew Ltd closed down sugar cane production at the 2,400-acre Holland Sugar Estate and the smaller Casa Marantha (estate) — both former feeder estates for Appleton — in St Elizabeth, citing heavy losses, high operational costs and depressed sugar prices globally.

When contacted yesterday, a spokesperson for J Wray & Nephew Ltd said only that “consultations are taking place”.

Sources suggest that should the historic Appleton sugar factory be closed, J Wray & Nephew Ltd may rely solely on imported molasses for making rum. Locals say that currently, molasses is imported during the off-season.

When contacted by phone yesterday, Councillor Audie Myers (PNP, Siloah Division) said while there had been “rumours” of a closure, he remained hopeful based on responses to enquiries he had made.

Myers declared that a shutdown of sugar operations at Appleton would mean “disaster” for thousands of workers, farmers, contractors and their children.

“I can tell you that I would never want to see the day come when Appleton close,” said Myers. “It would mean total devastation for not just northern St Elizabeth but neighbouring parishes. Can you imagine both sugar and bauxite shut down in St Elizabeth?”

The Jiuquan Iron and Steel Company Alpart bauxite/alumina plant at Nain in St Elizabeth was closed late last year to facilitate modernisation, leaving hundreds of people out of work. The planned modernisation project was put on hold early this year because of the coronavirus pandemic.

Jamaica’s sugar industry, which reached a production high of more than 500,000 tonnes annually in the 1960s, has been in rapid decline in recent decades, incurring huge losses in the process. Thousands of people lost jobs as sugar production fell.