Nordzucker sets foot in Australia

The German Nordzucker, the second largest sugar factory in Europe, is taking over 1% of the shares of Mackay Sugar. This not only opens up the Australian market, but also gives Nordzucker access to the growth market of Southeast Asia.

Due to limited growth opportunities in Europe announced Nordzucker wants to grow on the global market by the end of 2018. In February an agreement was signed with Mackay Sugar Limited (MSL) to acquire 70% of the share capital. The condition was the sale of the unprofitable sugar factory in Mossman. On Monday, July 29, MSL's shareholders voted in favor of the transaction by a majority.

Increase production capacity
Nordzucker invests in the 3 factories Marian, Farleigh and Racecourse, all of which are located in the immediate vicinity of Mackay. The aim is to significantly increase the availability of factories with an annual production capacity of approximately 700.000 tons of sugar.

Lars Gorissen, the CEO of Nordzucker, is convinced that MSL will make a positive contribution to profits in the Nordzucker Group in the medium term. "Thanks to the cost structure, cane sugar production is profitable even at low sugar prices and the infrastructure in the Mackay region is optimal. In addition to the stable Australian sugar market, with MSL we are also opening the world's largest growth market in South East Asia."

Jeanette Pennings

Jeannet has her roots in the flower bulb sector and she grew up on an agricultural company in the northern part of North Holland. As a generalist she reports for Boerenbusiness across all sectors. She is also exploring the possibilities of sponsored advertising.

j.pennings@boerenbusiness. Nl

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