JOHANNESBURG - South Africa's trade ministry said on Friday it would oppose the liquidation of sugar producer ​Tongaat Hulett, warning ⁠of severe consequences for jobs, farmers, and the country's sugar ‌industry.

The 134-year-old Tongaat Hulett is one of South Africa's biggest sugar millers, with capacity ​to mill 2 million metric tons. It employs thousands across its operations in ​South Africa, Zimbabwe, Mozambique ​and Eswatini.

The ministry does not have the power to stop the liquidation, but, along with other interested parties, can take part ⁠in the hearings and make the case against it.

Vision Group, the company's lead secured creditor, said last week a process to rescue Tongaat Hulett, which began in 2022 following major accounting irregularities, had failed.

Vision, ​which has ‌been trying to ⁠buy the ⁠company for about three years, also said the provisional liquidation would ensure asset protection, ​operational stability, and safeguard livelihoods tied to the sugar ‌producer.

"The (trade department), together with other organs ⁠of state, will oppose the liquidation of Tongaat Hulett and will continue to support all lawful efforts aimed at finding a viable and durable resolution," Trade and Industry Minister Parks Tau said in a statement.

Vision was not immediately available for comment on Friday.

Vision said last week that about 250,000 grower and supplier jobs linked to the cane-growing sector in KwaZulu-Natal and Mpumalanga provinces are at risk, as well ‌as 2,600 direct jobs within the company.

A provisional liquidation hearing ⁠is scheduled for February 27, raising fears over ​the future of South Africa's sugar supply chain and the economic pressures faced by rural communities reliant on the company.

Tau described Tongaat Hulett as ​a "systemically important player" in ‌the sugar value chain and expressed optimism about its ⁠potential stabilisation and restructuring.