EQS-News: AGRANA: Production at sugar factories in Leopoldsdorf (AT) and Hrušovany (CZ) to be ceased
EQS-News: AGRANA Beteiligungs-Aktiengesellschaft / Key word(s):
Restructure of Company
AGRANA: Production at sugar factories in Leopoldsdorf (AT) and Hrušovany
(CZ) to be ceased
12.03.2025 / 13:04 CET/CEST
The issuer is solely responsible for the content of this announcement.
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AGRANA: Production at sugar factories in Leopoldsdorf (AT) and Hrušovany
(CZ) to be ceased
CEO Büttner: “The goal is to make the sugar production site robust in
difficult times – concentration of production in Austria in Tulln”
At its meeting today, the AGRANA Supervisory Board has decided the
termination of sugar production at its site in Leopoldsdorf in Marchfeld,
Austria, and at its site in Hrušovany, Czech Republic, with immediate
effect.
In Austria, the company’s entire domestic sugar production will in the
future be based in Tulln. This measure is an important part of the
company’s strategic realignment, which aims to achieve long-term
stabilisation and competitiveness for the domestic sugar production. The
goal is to focus entirely on the Austrian market with domestically
produced sugar. In the Czech Republic the sugar production will be
concentrated at the Opava site.
The Leopoldsdorf site will remain in place as a logistics hub. In
particular, sugar is to be stored in the existing silos and to be packaged
there. Regarding potential opportunities for further economic use of the
70-hectare company site, AGRANA is developing additional future scenarios
for the factory premises in the short term.
Background to the decision
The decision is based on a comprehensive evaluation of the economic and
regulatory conditions. Rising production costs, increasing competition due
to a decline in sugar consumption across the EU, market liberalisation
(Mercosur agreement, sugar imports from Ukraine), and regulatory
requirements have made it economically unviable to continue production at
two sites in both Austria and the Czech Republic. The sugar market does
not allow for the production volumes that would make the operation of the
affected sites viable in the medium term, let alone the long term.
“It was a difficult but unavoidable decision to close two production
sites, especially because we are committed to sugar production in Central
and Eastern Europe,” explains Mag. Stephan Büttner, CEO of AGRANA,
emphasising that “we are taking this step fully aware of our
responsibility for Austria as a sugar production location. By focusing on
our site in Tulln, we want to create a stable and lasting basis for a
sustainable Austrian production. Our aim is to make Austria a robust sugar
production location.”
Consequences for employees
The closures affect about 270 employees, about 120 of whom work in
Leopoldsdorf and about 150 in Hrušovany. AGRANA is providing them with
extensive support. This includes retraining and qualification programmes,
opportunities to take up jobs at other sites within AGRANA, and individual
redundancy packages, as well as advice on professional reorientation. One
focus is on supporting regional labour forces in the surroundings of the
Leopoldsdorf and Hrušovany sites.
Focus on the Tulln site in Austria
The decision to focus on the Tulln site will ensure full capacity
utilisation. In the future, production will be geared towards meeting the
requirements of the Austrian market in the best possible way, securing the
site in Austria in the long term and enabling sustained growth.
Strengthening partnerships with local beet farmers
“We will focus on the Austrian market with Austrian sugar. By focusing on
Tulln, we are investing in the future of sugar production in Austria. Our
goal is to sustain value creation and continue taking responsibility as a
strong partner for domestic beet farmers”, concludes Stephan Büttner.
About AGRANA
AGRANA converts agricultural raw materials into high-quality foods and
numerous industrial intermediate products. About 9,000 employees at 53
production sites worldwide generate annual Group revenue of approximately
€ 3.8 billion. Established in 1988, the company is the global market
leader in fruit preparations and the world’s leading producer and vendor
of apple and berry juice concentrates. As well, its Starch segment is a
major manufacturer of custom starch products (made from potato, corn and
wheat) and of bioethanol. AGRANA is the leading sugar producer in Central
and Eastern Europe.
For queries, please contact:
Markus Simak
Public Relations
+43 1 21137 12084
[1]markus.simak@agrana.com
Hannes Haider
Investor Relations
+43 1 21137 12905
[2]hannes.haider@agrana.com
This information is available in German and English at [3] www.agrana.com.
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12.03.2025 CET/CEST This Corporate News was distributed by EQS Group.
www.eqs.com
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Language: English
Company: AGRANA Beteiligungs-Aktiengesellschaft
F.-W.-Raiffeisen-Platz 1
A-1020 Wien
Austria
Phone: +43-1-21137-0
Fax: +43-1-21137-12926
E-mail: investor.relations@agrana.com
Internet: www.agrana.com
ISIN: AT000AGRANA3
WKN: A2NB37
Listed: Regulated Unofficial Market in Berlin, Dusseldorf, Frankfurt,
Munich, Stuttgart, Tradegate Exchange; Vienna Stock Exchange
(Official Market)
EQS News ID: 2099490
End of News EQS News Service
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