DE4CC0DE-5FC3-4494-BCBF-4D50B00366B5
Supply Chain

French Sugar Maker Tereos Sells Factory Site To Fries Maker Agristo

By Reuters
Share this article
French Sugar Maker Tereos Sells Factory Site To Fries Maker Agristo

Sugar group Tereos has agreed to sell a factory site in northern France to fries maker Agristo following its announcement in March that it would end sugar production there, France's industry ministry said.

Belgian firm Agristo plans to invest around €350 million ($378.4 million) to develop a new factory for potato-based products to replace the existing sugar processing facility, a ministry official told reporters.

The sale price for the site was not disclosed, the official said.

Cooperative-owned Tereos faced a union and government backlash after the closure announcement earlier this year, with unions blocking some 40,000 metric tonnes of sugar inside the factory for weeks.

Sugar Beet Supply

Tereos said its decision to end production at Escaudoeuvres, which will affect 123 jobs, was due to a drop in sugar beet supply from local farmers.

ADVERTISEMENT

Soaring sugar prices helped Tereos, one of the world's largest sugar makers by volume due to large activities in Brazil, to post a record profit in 2022/23 but high debts prompted the group to sell assets worldwide.

The company attributed the results to market momentum and an increase in prices across all its segments – sugar, alcohol, ethanol, sweeteners and electricity – strict cost control and well executed hedging strategies.

The firm will maintain a logistics operation next to the sugar factory site being sold.

Agristo, which could create about 350 jobs at the French factory, aims to benefit from nearby potato production in northern France and logistical access to southern Europe, the industry ministry added.

Read More: India Set To Ban Sugar Exports For First Time In Seven Years

Get the week's top grocery retail news

The most important stories from European grocery retail direct to your inbox every Thursday

Processing your request...

Thanks! please check your email to confirm your subscription.

By signing up you are agreeing to our terms & conditions and privacy policy. You can unsubscribe at any time.