Danisco to close down its sugar factory in Salo

print this

Danish sugar giant Danisco will put a stop to sugar production at its factory in Salo, Finland from the end of this year. The decision comes as a reaction to the EU decision to lower subsidies for sugar production. Danisco's other Finnish production unit in Säkylä, near Pori, will stay in operation for now.
      Danisco's reorganisation measures will also include shutting down the Assens and Köpingebro factories in Denmark and Sweden respectively. Parts of Finland and Sweden's sugar quotas will be sold in the same instance. They will be replaced by an extra quota for the sugar factory in Anklam, Germany
     
Danisco has announced it will now enter into negotiations with the employees of the Salo factory. The production is to cease after processing of this autumn's sugar beet harvest.
      The Salo factory gives work to around 60 people. During the peak season, the employee count draws nearer to a hundred. According to Vesa Kurula, managing director of Danisco's Finnish subsidiary Suomen sokeri, the aim is to get by with the fewest possible dismissals.
      "We will try to relocate staff to our other plants in Säkylä, Jokioinen, and Kantvik."
      Relocation, however, would inevitably mean moving to another town, which is not an option to many of the workers.
      Kurula believes there is still a future for the Salo factory as well. The future plans include possible production of ethanol for fuel. This plan, however, would require changes to Finland's policy on new energy sources.


Previously in HS International Edition:
  EU allows Finland to pay special compensation for sugar farmers (25.11.2005)
  Sugar beet growers concerned at EU plans for production and producer prices (23.6.2005)

Links:
  Press release: Danisco safeguards sugar activities for the future

Helsingin Sanomat