Vienna/Sofia, November 22, 2006 - AGRANA has expanded its sugar business to Bulgaria with the founding of AGRANA TRADING EOOD, a trading company that is located in Sofia.
In a subsequent step AGRANA plans to establish a sales joint venture together with the Bulgarian sugar producer Zaharni Zavodi AD, in which AGRANA will hold a stake of 51% and the Bulgarian partner 49%. The founding of this joint venture is subject to the approval of local competition authorities.
AGRANA intends to market a broad range of high-quality products in this country, which will include items from both its sugar and starch lines.
The planned accession of Bulgaria to the EU has increased the long-term importance of this market for AGRANA. The annual market potential for sugar in Bulgaria equals roughly 260,000 tons and is currently covered by local raw sugar refining and imports. AGRANA expects the combination of its international know how with the regional presence of Zaharni Zavodi will create excellent opportunities to increase market shares in the high-quality brand segment. Zaharni Zavodi, an established company in Bulgaria, recorded revenues of approximately € 35 million.
AGRANA has been one of the leading sugar companies in Central and Southeast Europe for many years, and sells sugar products under local country brands that include “Wiener Zucker“, “Koronas Cukor“ and “Margaritar Zahar“. AGRANA operates nine sugar plants in this region, and a further facility is currently under construction in Brcko/Bosnia. During the 2005|06 financial year the AGRANA Sugar Segment generated revenues of € 770.4 million with 2,900 employees.