The Dutch government is providing Royal Cosun with a subsidy of up to €105 million to enable large-scale sustainability investments in its factories. The money comes from the Climate Fund and is part of a customized agreement that Cosun signed with the government today.
Of the total amount, a maximum of €73 million is earmarked for the first phase of the agreements. In addition, Cosun can utilize existing generic subsidy schemes such as SDE++, VEKI, and DEI+, within the European state aid frameworks.
The subsidy is intended to enable investments that lead to a significant reduction in energy consumption and CO2, nitrogen, and ammonia emissions. The first phase involves projects at three locations: the Cosun Beet Company sugar factory in Vierverlaten, the Aviko French fries factory in Steenderen, and the Aviko Rixona factory in Venray. The State provides not only financial support but also assistance with practical requirements such as permits and network connections.
According to Cosun, the government's contribution is crucial to making this capital-intensive sustainability drive feasible, especially at a time when the company is simultaneously implementing cost savings. With this customized agreement, the cooperative aims to future-proof its factories and safeguard the long-term competitiveness and earning capacity of its members.
Not an easy decision
"This wasn't an easy decision," write Arwin Bos, Chairman of the Cosun Board of Directors, and Hans Meeuwis, CEO of Cosun. "These investments have been carefully considered, with an eye for both strategic necessity and financial responsibility. Especially at a time when we are implementing cost-saving measures, it's important to make choices that strengthen our cooperative in the long term. With this step, we are continuing to build a future-proof cooperative, strengthening our members' revenue model, and contributing to a healthy, stable supply chain and improving our competitive position."