Government creates new national sugar holding out of state-owned mills

Yesterday, Treasury Minister Wieslaw Kaczmarek created a national sugar holding company which is eventually to control around 40% of the domestic market and save a number of companies from bankruptcy. The new holding (Krajowa Spolka Cukrowa - KSC) encompasses 19 yet-to-be-privatized sugar firms in central and eastern Poland but does not include the largest sugar refinery - Slaska Spolka Cukrowa - in Silesia. The treasury hopes to include eight more refineries in KSC - three plants owned by planters as well as five previously earmarked for sale. In the case of the first three plants, only the agreement of their shareholders is necessary to include them in the new holding, however the future of the remaining five will be determined in court as German investor Nordzucker claims that, according to an agreement with the Treasury Ministry, the latter should conclude the privatization of Malbork, Nowy Staw, Gryfice Kluczew and Pruszcz. Ultimately, KSC will have an annual production capacity of 630,000 tonnes - 37% of the domestic market. The Treasury Ministry envisages an annual turnover for the group of over zl. 1.2 billion. (Puls Biznesu, p.6; Reuters) A.Z.