Nordzucker to Cut 300 Jobs by 2014

The package of measures primarily entails speeding up and extending the already initiated efficiency-enhancement scheme, as well as targeted cost-cutting measures. In addition, Nordzucker will also reassess all of its trade investments to determine whether they continue to fulfill their expectations.

22 Feb 2010 --- Nordzucker is implementing a comprehensive package of measures to secure profitability and safeguard its future in preparation for more intense competition. The package of measures is designed to cut the Group’s costs by a total of around Euro 67 million through 2014/2015.

The package of measures primarily entails speeding up and extending the already initiated efficiency-enhancement scheme, as well as targeted cost-cutting measures. In addition, Nordzucker will also reassess all of its trade investments to determine whether they continue to fulfill their expectations.

All Group regions and divisions will play their part in ensuring that the efficiency-enhancement and cost-savings potential which has been identified is achieved according to schedule. In addition to measures affecting production, procurement, and sales & marketing, this also includes the phased downsizing of the workforce across the Group by around 300 by 2014/2015. Discussions are to start immediately with the relevant bodies – especially the regional workers’ representatives – to determine the precise details of this measure and its implementation.

“Within the EU, we have to adapt to further consolidation of the market, that will be exposed to more pressure from third countries. Higher price volatility can also be expected. We are determined to rigorously prepare the Nordzucker Group for the tougher competitive conditions. Having a pronounced sense of cost-awareness is one of the crucial prerequisites for succeeding in this context. Our operative strength in our core business, our market position, the strong connection with our clients, the close relationship with the agricultural sector, and the strength we draw from our ownership structure, form the platform for tackling the challenges ahead,” says Hartwig Fuchs, CEO Nordzucker AG.

The Nordzucker Group, with its headquarters in Braunschweig/Germany, is Europe’s second biggest sugar producer, with a market share of 15.4 per cent. The company also produces other products, in particular, bioethanol and animal feed from sugar beet. The acquisition of Nordic Sugar (previously Danisco Sugar) in March 2009 strengthened this leading position further. With 17 sugar factories in eight countries across Europe, as well as two refineries for raw cane sugar, Nordzucker boasts an efficient technical, distribution and geographical structure - the platform for more success in future. On the basis of sugar production of around 1.7 million tonnes, Nordzucker generated sales of around Euro 1.2 billion in the 2008/09 financial year (excluding Nordic Sugar). The Group-wide workforce of nearly 5000 is committed to deliver excellent products and services.