Nov. 12 - In order to improve competitiveness, Danisco Sugar is planning to consolidate sugar production in Lithuania at one factory.
Today, Danisco Sugar produces sugar at two factories in Lithuania – in Kedainiai and Panevezys. With a view to optimising the platform further, concentrating production in Kedainiai will be the most expedient solution. Only moderate investments will be required to obtain the capacity needed to produce the expected future quota volume at that factory.
The consolidation also reflects Danisco Sugar’s plans to sell part of its EU quota as announced in September following the latest amendment of the EU sugar reform. Danisco Sugar will now start consultations with employees and beet growers on a renunciation of 13.5% of Danisco Sugar’s Lithuanian sugar quota and discontinuation of the factory in Panevezys after the 2007 campaign.
Around 200 employees will be affected by the planned factory closure. As in the case of previous factory closures, Danisco Sugar will be working closely with employee representatives to offer a wide range of support measures for the affected employees.