economy
Đuričin: Announced takeover of Crvenka sugar factory is positive
Professor of the Faculty of Economics in Belgrade, Dragan Đuričin, assessed today that the announced intention of "MK Group" to take over the sugar factory in Crvenka is an "extremely positive step" towards the consolidation of the sugar industry in Serbia and that this move could prevent serious disruptions in domestic production.
TL;DR
- The potential takeover of the Crvenka sugar factory by MK Group is considered an "extremely positive step" for consolidating Serbia's sugar industry.
- The closure of the Crvenka sugar factory, owned by an Irish investment fund, would result in a loss of 30-40% of Serbia's total sugar production.
- Consolidation would safeguard the entire value chain, including sugar beet producers and the confectionery industry.
- Approximately 1,000 jobs in the sugar industry and over 4,500 related jobs would be preserved.
- Strengthening the sugar industry would enable Serbia to become a more significant player in the EU market, where sector consolidation is ongoing.
- Combined capacities would enhance productivity, lower costs, reduce prices, and boost exports, preventing Serbia from becoming a net importer of sugar.
- MK Group's acquisition is projected to bring an additional 50 million euros to Serbia.
- The process involves obtaining approvals from the Serbian Commission for Protection of Competition and other regulatory bodies.
- MK Group's subsidiary, Sunoko, is the largest sugar producer in the region and already meets domestic market needs.