Bitter prospects

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Agrana discontinues sugar production in Leopoldsdorf and at one site in the Czech Republic.(Bild: HARALD SCHNEIDER / APA / picturedesk.com)

The sugar group Agrana announced on Wednesday that it will cease sugar production at its Leopoldsdorf site in Marchfeld with immediate effect. This decision means that the sugar factory in Tulln is the only remaining production site in Austria.

In addition to the Lower Austrian factory, the Czech factory in Hrušovany will also be closed. In the Czech Republic, production will be concentrated at the Opava site in future.

Agrana sees "sustainable basis" for operations
"We are taking this step in full awareness of our responsibility for Austria as a sugar location. By concentrating on our site in Tulln, we want to create a permanently viable basis for sustainable Austrian production," said Agrana CEO Stephan Büttner, explaining the decision. The decision was "difficult, but necessary".

End of production in Leopoldsdorf: In future, all Agrana sugar production in Austria will take place at the Tulln site.(Bild: HARALD SCHNEIDER / APA / picturedesk.com)

(Bild: HARALD SCHNEIDER / APA / picturedesk.com)

120 employees in Leopoldsdorf will lose their jobs
The closures will affect around 270 employees, including around 120 in Leopoldsdorf. The company has announced that it will provide extensive support measures, including retraining, qualification programs and opportunities to take over jobs at other Agrana sites.

The Leopoldsdorf site is to be retained as a logistics hub. According to the company, sugar will continue to be stored in the existing silos and sugar will continue to be packaged there. Agrana wants to develop further future scenarios for the 70-hectare company site.

The high costs are to blame
The company cited rising production costs, increasing competitive pressure due to the decline in sugar consumption in the EU, market liberalization and regulatory requirements as reasons for the closure. The economic conditions would have made the continuation of production at two sites each in Austria and the Czech Republic "economically unsustainable".

By concentrating on Tulln, Agrana intends to focus primarily on the Austrian market in future and strengthen its partnership with domestic beet farmers.