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31 July 2019

Nordzucker acquires majority stake in Mackay Sugar

  • Acquisition of majority stake of 70 percent in Australian sugar producer Mackay Sugar
  • Nordzucker opens up stable Australian market and secures access to the growth market of Southeast Asia


Nordzucker has successfully completed the acquisition of a 70 percent majority stake in Mackay Sugar Limited (MSL), Australia’s second largest sugar producer.

In February of this year, Nordzucker signed an agreement with MSL to acquire 70 percent of the company's share capital. The closing of the transaction was subject to certain conditions precedent, in particular the sale of the unprofitable sugar factory in Mossman and the approval of MSL shareholders. On July 29, 2019, the shareholders at an extraordinary general meeting also approved the transaction with a clear majority.

Dr. Lars Gorissen, CEO of Nordzucker AG, said: "I am delighted that we have successfully completed the transaction. The negotiations with MSL and the talks with the owners were very constructive and trustful. I am confident that together we can lead the company into a successful future and that MSL will make a positive contribution to the Nordzucker Group's earnings in the medium term".

Jochen-Johannes Juister, Chairman of the Supervisory Board of Nordzucker AG, stated: "The Supervisory Board and the owners of the company expressly welcome this move to Australia. It marks an important milestone in the history of Nordzucker AG and for the future of the company".

Entry into the sugar cane business increases competitiveness
Nordzucker is investing in the three plants Marian, Farleigh and Racecourse, all of which are located in the immediate vicinity of Mackay. The aim is to significantly increase the capability of the factories, which have an annual production capacity of about 700,000 tons of sugar.

"Thanks to the cost structures, cane sugar production is profitable even at lower sugar prices and the infrastructure in the Mackay region is optimal. In addition to the stable Australian sugar market, MSL gives us access to the world's largest growth market in Southeast Asia", says Gorissen,  stressing that "Nordzucker is clearly focusing on sugar - from beet and cane."

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Nordzucker acquires majority stake in Mackay Sugar

 

Background
Nordzucker Group The Nordzucker Group, headquartered in Braunschweig, Germany, is one of the leading sugar manufacturers in Europe and also produces bioethanol and animal feed from sugar beets. Sustainability along the entire value chain is a high priority for the company. A total of 3,200 employees and 18 production and refining facilities across the Group stands for excellent products and services and thus form the basis for further growth.


Mackay Sugar Limited

Mackay Sugar Limited (MSL) is an unlisted company and Australia's second largest sugar producer. MSL operates three cane sugar factories in Queensland. The Racecourse, Marian and Farleigh plants are located in the Mackay region. MSL employs approximately 800 employees. The product range mainly comprises raw sugar, white sugar, molasses and renewable energies. The three plants produce around 700,000 tons of raw sugar both for the domestic market and for export. MSL also holds a 25 per cent stake in Sugar Australia for the refining, marketing and distribution of sugar.

 

For queries please do not hesitate to contact Christian Kionka via phone or mail.
Fon: +49 531 2411-173
Mail: Christian.Kionka{@}Nordzucker[.]com

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Christian Kionka

Christian Kionka

Head of Communications & Public Affairs
Nordzucker Group

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