BERLIN (dpa-AFX) - Suedzucker AG (SUEZF.PK) said that its supervisory board has agreed on the restructuring plan for the sugar segment suggested by the executive board. According to the restructuring plan first presented in the supervisory board meeting on 30 January 2019, Suedzucker targets to reduce the impact of the strong price variation in global and EU sugar markets on the sugar segment and therefore to secure and strengthen the sustained economic corporate success.
It is planned to close five sugar factories with an average annual total sugar production volume of about 700,000 tonnes, to streamline the capacities more alongside European market demand.
Following the campaign 2019 there should be two factory closures in Germany (Brottewitz and Warburg) and two factory closures at the French subsidiary Saint Louis Sucre (Cagny and Eppeville). The affected factory at the Polish subsidiary S?dzucker Polska (Strzy?w) should be closed earlier.
Future investments should visibly strengthen factories situated nearby sugar factories affected by the closure. In addition it is planned to further reduce administration costs in Belgium, Germany, France and Poland. The restructuring plan could require further consultations with the respective regional employee representatives.
The total cost savings impact could amount in the following years up to about 100 million euros p.a. depending on the sugar world market price. The restructuring expenses could amount in total in the following years to 180 million euros to 220 million euros, of which about 70 percent are cash flow related.
The group's revenues and operating result outlook for business year 2018/19 is not affected by this.
Copyright RTT News/dpa-AFX