Sunoko continue Serbian sugar investments
operations throughout 2007, despite continued uncertainty over the
future of sugar production in the neighbouring EU.
The company, which is a joint-venture between German group Nordzucker and Novi Sad based MK Komerc, announced this week that it would be spending around €13m on improving four of its plants in the country.
The funding gives a strong indication of the company's ambitions for its production sites in Bac, Kovacica, Pecinci and Vrbas.
Sunoko has already spent €8m on the plants in 2006, which have seen production amount to 210,000 tons during the year.
Under its latest plans the group hopes it will to become the leading sugar producer in the region.
The investment and Sunoko's optimism belies huge changes for the sugar industry in Central and Eastern Europe, due to new EU sugar reforms which came into place on 1 July this year.
The controversial measures have been imposed by the EC as a means of increasing competitiveness within the market.
As a result the EU has decided to reduce production in the bloc by 6m tons over a four year transition period.
These reforms have seen a number of companies including ingredients giant Tate and Lyle, close sugar facilities, especially in Central and Eastern Europe.
