Sucrogen today announced an agreement to buy the Proserpine Co-operative Sugar Milling Association Limited (PCSMA) for $115 million dollars.

The move will increase Sucrogen's throughput capacity to 17 million tonnes of cane, and raw sugar production by about 10 per cent, to 2.2 million tonnes.

Proserpine also produces molasses and exports electricity as well as recently investing in facilities to manufacture and market furfural, a globally traded industrial chemical used in solvent extraction, foundry resins and pharmaceuticals.

The purchase, on a debt and cash-free basis, will be subject to approval by members of the PCSMA and by the ACCC. Sucrogen, which was spun off from CSR and sold to Singapore's Wilmar International last year, produces around half of Australia's sugar.