FIJI Sugar Corporation is carrying out a study to determine the viability of building a new sugar mill in Rakiraki.
FSC executive chairman Abdul Khan said work on the new mill would not disrupt crushing being conducted at the Penang factory.
"We are investigating the possibility of establishing a brand new syrup mill at Penang," he said.
"If the costing works out favourably, then we would also look at establishing a cogeneration plant there, though on a smaller scale compared to Labasa and Rarawai," he said.
Mr Khan explained the proposed new mill would be built close to the existing factory and syrup produced there would be transported to Rarawai for processing into sugar.
"Because we are investing a significant amount into the Rarawai factory, it only makes sense that we maximise on our investment.
"We want to make sure we get an optimum return on our investment."
Mr Khan said pre-feasability studies had been conducted and a survey on costs would be done over the next few months.
"It will be a seamless process. Once the new factory is online and commissioned, we will start processing cane there and shut down the old Penang mill."