Hellenic Sugar definitely gives up on sale of sugar plants in Zabalj and Crvenka

The Greek company Hellenic Sugar Industry will not be selling its two sugar plants in Serbia, in Zabalj and Crvenka, but enhance the production of sugar beet and sugar instead, the Managing Board of the company decided, after considering the bids of two interested purchasers, the French company Cristal Union and Austria`s Agrana, and deeming them unacceptable, stated the spokesperson of HSI, Christos Alexopoulos.

– None of those two investors offered nearly close to what the two Serbian sugar plants are worth. Agrana wanted to buy both sugar plants for EUR 50-51 million, and Cristal Union offered EUR 25 million, whereas the value of the sugar plants in Zabalj and Crvenka, according to the Managing Board`s opinion, is around EUR 85 million. Hellenic Sugar Industry will no longer advertise the sale of these two sugar plants. This is the definitive decision of the Managing Board and we will no longer open public invitations for bids of interested investors, but plan an enhancement of the production of sugar, that is, of planting sugar beet and investing in the production process – Alexopoulos stated.

There had been speculations in the public about the intention of the Greek company to sell the sugar plants in Zabalj and Crvenka for a year or two before HSI opened a public invitation for potential purchasers` bids in early 2017. However, even then, the company emphasized that the sugar plants would only be sold if a true buyer appeared, such that would pay the real price of the two sugar plants, while providing proof that it intended to enhance the production of sugar, invest and provide long-time guarantees that the sugar plants would operate.

Alexopoulos pointed out that the company contracted the production of sugar beet on 23,000 hectares in Serbia last year and that it expected that around 210,000 tons of sugar would be produced.

– It is a dry year, and the yields will not be especially big – Alexopoulos said and emphasized that HSI expected around EUR 31 million in net profit in 2017.

– Last year, there were 18,000 hectares under sugar beet, 180,000 tons of sugar were produced and a net profit of EUR 23.4 million was made.

He reminded that, in the preceding period, year after year, Hellenic Sugar had had increasingly more sugar beet planted, as it honored the agreements with agriculturists regarding payment and securing seeds and protection products.

– In the past two seasons, we have organized lectures at the Faculty of Agriculture, where producers were able to hear how to increase the yield per hectare and we will continue with such educational activities – Alexopolous emphasized.

Hellenic Sugar Industry has three sugar plants in Greece and, together with the two Serbian ones, is among the top five producers of sugar in the markets of Europe, Russia, Ukraine...

The French and the Austrians were not alone in making a bid for the plants in Zabalj and Crvenka.

As Alexopolous clarified, Cristal Union sent the bid together with Croatia`s Viro, and Agrana`s bid was sent in cooperation with MK Group, which is owned by local businessman Miodrag Kostic. The German Sudzucker is the company behind Agrana.

Hellenic Sugar Industry Thessaloniki Greece

Cristal Union S.C.A. Paris

Crvenka fabrika šećera a.d. Crvenka

Šećerana a.d. Šajkaška Žabalj

AGRANA GRUPPE Wien

Viro tvornica šećera d.d. Virovitica

MK Group d.o.o. Beograd

Hellenic Sugar Industry

Cristal Union France

Agrana Austria

Viro Croatia

Sudzucker

MK Group

Zabalj sugar plant

Crvenka sugar plant

Christos Alexopoulos

sugar plant

sale of Zabalj sugar plant

sale of Crvenka sugar plant

sugar beet

production of sugar

sugar