Takac: Termination of Sugar Production in Povazsky cukor Irreversible

Bratislava, 6 February (TASR) - The process of discontinuing sugar production at the Povazsky cukor sugar factory in Trencianska Tepla (Trencin region) is irreversible, Agriculture and Rural Development Minister Richard Takac (Smer-SD) stated on social media after a meeting with chairman of the company's Board of Directors Michal Abelovic earlier on Friday. Takac added that the ministry will prepare an economic analysis and consider making a bid to the German shareholder Nordzucker Group to purchase the factory. According to Takac, Abelovic told him that "even if the government were to take some positive steps, the process of discontinuing sugar production in the factory is irreversible for the German shareholder, and has been completed". Povazsky cukor's owner Nordzucker Group is the second largest sugar producer in the European Union and the sixth largest in the world, owning several sugar refineries. Povazsky cukor produced on average around 80,000 tonnes of sugar per year, but sold more 240.000 tonnes, which implies that it was partly operating as a distribution warehouse, said Takac. He specified that Slovakia produces about seven tonnes of sugar per hectare on average, as compared to more than 12 tonnes in the Netherlands and France. According to him, there is probably a surplus of sugar on the market, while demand is also affected by changes in consumer behaviour. "The younger generation no longer uses sugar in their kitchens the way it was common ten or twenty years ago," stressed Takac. He also commented on having an economic analysis of the company prepared at the ministry. "Once it's ready, I will discuss the situation in the company with the prime minister. If the figures look good and if we also receive sufficient information from the agricultural sector, it's likely that we will make a bid to buy the sugar factory and continue operating it," added Takac. Abelovic told a briefing on Thursday (5 February) that more than 90 employees will be laid off from the sugar factory in connection with the termination of sugar production and sugar beet processing, adding that some of them won't come to work on Friday. jrg