Sector News

Suedzucker to close Polish sugar plant in restructuring

February 20, 2019
Food & Drink

Europe’s largest sugar refiner Suedzucker plans to close a 50,000 tonne-a-year production plant in Poland, it said on Tuesday, part of a restructuring programme to counter a slump in sugar prices.

The company also recently announced it will close sugar factories in Germany and France, but said on Tuesday the latest closure means it will have achieved its output reduction target.

Suedzucker said in January it planned to cut production capacity by around 700,000 tonnes per year as part of a plan to save about 100 million euros ($112.8 million) annually.

The latest plant to be closed is in Strzyzow in south-east Poland, a Suedzucker spokesman told Reuters. The facility has about 70 employees and will close this year.

“With this closure we will have reached our target of 700,000 tonnes,” he said.

On Feb. 14, Suedzucker unit Saint Louis Sucre announced the closure of two French plants with a combined capacity of around 450,000 tonnes.

That came two weeks after it said it would close two plants in Germany which together produce around 200,000 tonnes of sugar a year.

Raw sugar futures ended 2018 at their lowest in 10 years, pressured by heavy global oversupply.

The European Union liberalised its sugar market in September 2017, ending its system of guaranteed minimum prices and protected production quotas.

That gave European producers more freedom to expand and export, but left them exposed to collapsing world prices. ($1 = 0.8864 euros)

By Michael Hogan

Source: Reuters

comments closed

Related News

September 12, 2021

Roquette opens a plant protein center of expertise in Vic-sur-Aisne, France

Food & Drink

The new center of expertise illustrates Roquette’s strategy of making its Vic-sur-Aisne site a dedicated place for plant protein development. This center will be a major asset to design the future technological processes that will bring new plant protein properties.

September 12, 2021

Cargill opens $150m pectin processing plant in Brazil

Food & Drink

The new state-of-the-art facility will prioritise “sustainable production with advanced CO2 emission reductions and biomass reuse,” a company statement said. It will also enable Cargill to meet increasing demand for clean label texturising ingredients.

September 12, 2021

Azelis IPO to raise US$1B on Belgian stock market

Food & Drink

The move will assist in repaying outstanding debt (circa €1.6 billion or US$1.9 billion), while providing the company with increased financial flexibility. The IPO is also expected to support Azelis’ growth strategy and future acquisitions by providing funding and giving it access to capital markets.

Send this to a friend