Nordzucker_GB 03-04_E_.pd 1 - Nordzucker AG

Schleswig plant. Good beet qualities in
all the factories, no technical problems,
and relatively low declassification are the
key factors that brought about the second
best operating results Nordzucker
AG has ever experienced.
With the US dollar remaining weak,
the world market price for sugar intensified
its downward trend, implying low
C-sugar yields. In Poland, however, we
were clearly able to reduce losses, despite
an equally negative trend in local sugar
market prices. Outside the sugar sector,
all our operating interests were in the
black.
Internally, there were also changes
and achievements. In October, our quality
and environmental management system
was re-certified successfully and without
any deviations in accordance with
ISO 9001 and 14001. All in all this can be
chalked up as sound affirmation of the
high level of compliance we display with
the requirements made on our products,
on the systems and on the environment.
Having carefully weighed up potential
advantages and anticipated possible
returns, our plans for the construction of
a bioethanol plant were suspended at the
end of 2003 for the foreseeable future.
This now allows us to fully concentrate
our efforts on the expansion of our core
activities and competence in sweetening
products. Our customers are calling for
this orientation. It is in their laboratories
that the foodstuffs for tomorrow’s markets
are being produced. Thanks to the
work of the Nordzucker expert teams
constituted to provide product and technological
support to our customers in
industry, the development and distribution
of new household sugar specialities,
as well as the systematic intensification of
our customer relations, we unswervingly
sustained our course along this path in
2003.
Intensified external customer orientation,
clear and process-oriented internal
procedures and a staff leadership oriented
towards measurable targets – all these
elements in conjunction with a moderate
and socially compatible streamlining of
the workforce – also at Nordzucker headquarters
– will strengthen our concentration
on the essential business operations
and ultimately our competitiveness. More
than ever before, our actions are guided
by the principles of reliability, speed
and costs coupled with the challenges of
creativity and flexibility.
On 23 September 2003, the EU Commission’s
so-called “options paper” on
the proposed reforms of the sugar market
regulations appeared in the Internet.
The Commission’s intention of triggering
a far-reaching discussion of the sugar
market regulations and possible reforms
was initiated. In the light of a predicted
loss of at least 70,000 jobs in the EU
sugar industry, accompanied by a
37-percent drop in sugar prices, justified
criticism was quickly voiced. It soon
became clear that not only the European
sugar industry would lose out on the
pure price markdown-based alternative.
Countries originally intended to profit
Nordzucker 2003/2004 3