Nordzucker_GB 03-04_E_.pd 1 - Nordzucker AG

The unfavourable situation in this market
is affecting all the sugar producers in
Poland, and Nordzucker continues to
record unsatisfactory proceeds. In a situation
of officially fixed beet prices, the
rationalisation measures launched have
helped to reduce losses significantly to
Euro 11 (15) million.
In view of a number of structural
measures and the transition of the Polish
sugar market to the scope of the EU sugar
market regulations, we expect a balanced
result for the accession year 2004.
Concentration in Two Locations
The closure of three factories after the
2002 campaign has improved the capacity
utilisation rate of the active factories
considerably. In the year under review,
the campaign covered a period of 77
(59) days. Sugar production was stopped
in the Krasiniec factory at the end of the
2003 campaign. For the year 2004, we
start from more than 90 campaign days
in the factories Opalenica (Wielkopolski
Cukier S.A) and Chelmza (Pomorski
Cukier S.A.). Our activities in Poland
are now concentrated according to
schedule in these two companies, in
which Nordzucker holds a stake of some
99 percent each.
In 2003, the capital expenditure in
fixed assets amounted to about Euro 9.8
(4.3) million. Most of this capital was
invested in the Chelmza plant, which, in
addition to general modernisation measures,
plans to expand its silo capacities.
Slovakia
With the acquisition of the Tereos stake
(previously Union SDA), Nordzucker has
a 95 percent interest in Považský Cukor
a.s. In the period under review, first steps
were taken toward the merger of this
company with its subsidiary Trnavský
Cukrovar a.s. The consolidation into one
company will be completed in 2004.
Improved Results
The 2003 sugar sales and prices were on
the previous year’s level and show a slightly
better result of Euro 1.9 (1.6) million.
The capital expenditure in fixed assets
amounted to Euro 2.4 (1.3) million and
was concentrated on the Tepla plant,
which is to also process the Trnava beets
as from the year 2005.
Hungary
In the year 2003, Nordzucker acquired
three sugar factories in Hungary from the
French Béghin-Say group. The majority
of the Béghin-Say group itself has been
taken over by Tereos.
Polish Sugar Imports Make Prices Drop
Sugar imports from Poland triggered a
decline in prices in Hungary in the first
six months of 2003. Adequate protection
for the Hungarian market was not
re-established until after that half-year
period so that the result is a negative
Euro 3.6 million. Another factor influencing
the company results were the necessary
adjustments to the balance sheet
regulations of Nordzucker AG.
Nordzucker market share
in Poland (in percent)
9%
2003
Nordzucker market share
in Slovakia (in percent)
39%
2003
Nordzucker 2003/2004 27