Olmedo, Spain, 27 November – The cooperatives TEREOS and ACOR have reached an agreement on the creation of an industrial company, equally owned by the two sugar companies. The agreement will enable TEREOS and ACOR to strengthen their position in the Iberian Peninsula.
Under this agreement, a refining unit will be developed in ACOR’s factory in Olmedo (Valladolid), currently Spain’s largest sugar factory, and will provide important refining cost efficiencies with minimal investment. Starting in 2010, this unit will have a refining capacity of 120,000 tons per year. It will be managed by ACOR and will rely on the French cooperative’s past experience. On a long-term basis, TEREOS will guarantee the supply of raw sugar to be refined in Olmedo, mainly coming from the French overseas territory Reunion and Mozambique.
In addition, TEREOS and ACOR will act together to market sugar through a company 60% owned by TEREOS and 40% by ACOR. This company will be managed by TEREOS, benefiting from the commercial expertise of both companies in Spain. Starting on the 1st of October 2009, the company will market sugar produced by the new refining business, as well as sugar beet from the ACOR cooperative and sugar beet imported by TEREOS for Spain.
The partnership between the two cooperatives will create a first-class industrial and commercial force located next to major consumer areas and will reach 450,000 tons of sugar per year. Together with other initiatives proposed in the sector, this partnership will also ensure a supply that meets the demand of both industrial clients and consumers in the Spanish market. The latter has experienced a growing sugar deficit since abandoning 50% of its sugar quotas in the context of the restructuring of the European sugar industry, which affected all players in the sector.
For J. Carlos Rico, Chairman of ACOR, “this agreement enables us to optimise the infrastructure at Olmedo by providing a substantial volume of activity during the rest of the year. This partnership will improve the income of ACOR’s cooperative members. Furthermore, the region will benefit from additional employment and a long-term commitment from the sugar beet industry”.
For Philippe Duval, Chairman of TEREOS, “this agreement will guarantee a long-term and stable demand for raw sugar originating mainly from our investments in Reunion (French overseas territory); this sugar will be refined under highly-competitive conditions in a strategic location situated in one of the major consumer areas in Spain, a country clearly lacking sugar production”.