Romanian sugar producer receives EUR 13 million state grant to increase capacity

Romanian sugar producer Zahar Premium, which in February 2023 acquired a sugar factory in Ludus (Mures County) from the French sugar group Tereos, will invest about 129 million lei (26 million euros) over the next three years, of which about half (48%) will be received as a government grant to increase production capacity and expand the range of products, Economica reports.

“In three years, we will contract more beets from farmers in the region. We will be able to conclude contracts for 11-12 thousand hectares against 8.7 thousand hectares now,” said Michaela Nyagi, co-owner of the company.

The company’s project was recognized as eligible for state aid worth 62.5 million lei under the Investalim grant scheme.

The investment should be completed within three years from the date of signing the financial contract.

The company is the only sugar producer in Romania with a sugar plant that currently processes beets. Its capacity will increase by about 25% from 3.2 thousand tons per day to 4 thousand tons per day.

The company plans to purchase packaging equipment and install a new vanilla sugar production line, as well as a new modern sachet sugar production line. The products will be destined for the local market.

Mihaela Năgă, through Best Achiziții, also controls the sugar factory in Bodi (Brasov County), where processing has not yet resumed. The sugar produced in Luduș is sold under the Bod brand.

In addition to the Ludus and Bod factories, the Austrian Agrana Group has production units in Romania in Romani and Buzau, which have been restricted since November 2023.

Tags: Romania, sugar