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Sugar: Südzucker AG intends to close factories

January 30, 2019 at 10:29 AM , Der AUDITOR
@Südzucker AG
@Südzucker AG
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MANNHEIM/FRANKFURT: As part of the restructuring plan for the sugar segment, the executive board intends to implement further cost-cutting measures in Germany and other countries in Europe.


Costs to be cut by EUR 100 million

The effects of the strong price fluctuations in the international sugar market on the economic success of the company are to be reduced. According to the current official press release, the entire value chain will be affected by the measures.

Administrative costs are to be further reduced in Germany and Europe. Production capacities are to be targeted meaning that factories are to be closed in order to cut sugar production by as much as 700,000 mt per annum. The Südzucker AG reckons that these measures will more closely align to the demand situation in the European market.

The cost-cutting measures outlined in the restructuring plan should reduce costs by as much as EUR 100 million per annum. The measures still require the approval of the Supervisory Board and decisions are to be announced over the next few weeks.

The sugar price

Following last year's historically low prices in the Europe, last year’s prolonged summer heat has significantly reduced sugar beet production. Prices have, however, recovered nominally. Sugar is currently being traded for EUR 0.53 per kg DDP Germany.

Attached Files

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price chart granulated sugar, DDP Germany

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