Hausbreaking Started in Sugarplant in Szolnok

The board of trustees at Mátra Cukor Zrt., belongs to German Nordzucker, announced last year in November, that the company finish the sugar producing in its Szolnok plant.The end of
sugar production from beet in Hungary is the inescapable consequence
of the European sugar market regulation resolved by the Community
council of agriculture ministers in February 2006. The EU Commission
goal of reducing sugar production in Europe by 6 million t through
the withdrawal of non-competitive beet growing regions was reaffirmed
by changes to Agriculture Council directives in September 2007.

It was
necessary to give up producing sugar from beet in Hungary because the
long- term security of supply to the Serencs and Szolnok sugar plant
of beet in sufficient quantities could no longer be guaranteed. The
prices demanded by beet growers' exceeded Matra Cukor's economic
possibilities under the EU specified market conditions. Mátra
Cukor will get HUF 20 billion from EU for closing the plants.