Sugar producer Agrana Zucker GmbH has agreed to buy two Romanian production units in Urziceni and Liesti from producer Lemarco.

“Agrana's intention here is not only to increase its sugar beet production but also its sugar refining activities and, therefore, to consolidate its presence in the South-East European market," says Johann Marihart, the Agrana CEO.

This will increase Agrana's presence in Romania, from its two existing sugar refineries in Buzau and Roman. The company has not disclosed the sale price, and the deal is pending the green light from anti-trust authorities.

In Romania, Agrana produces and sells sugar under the brands Margaritar Zahar and Coronita.

With a volume of more than 500,000 tonnes of sugar, the Romanian sugar market is supplied to an extent of only 20 percent with sugar from sugar beet; the remaining 80 percent is with sugar made from the refining of raw sugar cane, according to Agrana.

Lemarco, controlled by American shareholders, and Agrana are the largest sugar producers in Romania. Lemarco, which started its activity in 1993, acquired Marr Sugar and its Uzriceni factory in 2009.

With around 8,500 staff based at 55 production sites in 26 countries, Agrana generates global revenues of around EUR 3 billion.

editor@romania-insider.com