SUNOKO plans to continue investing in their factories

21.12.2012. | News and Press Releases
SUNOKO plans to continue investing in their factories

The company Sunoko, operating as a part of MK Group, the largest domestic producer and exporter of sugar, has completed the processing of sugar beet and produced more than 220 thousand tons of sugar, with processing 1.455 million tons of sugar beet from nearly 38,000 acres. In the past ten years Sunoko invested around 110 million euro in sugar factories and plans new investments of about EUR 20 million.

Challenges, dedication and hard work of employees all contributed to meeting the challenges not only during this year but over the past century.

SUNOKO accomplished to create a profitable, predictable, highly organized and planned business out of ​​ the business with “Queen of all crops“- sugar beet. In support of this it is confirmed that this year Sunoko accomplished a record production of 220 thousand tons of sugar in all three plants – said Miodrag Kostic, President of MK Group, adding that in 10 years around 110 million euros was invested in the sugar, and new investments in about 20 million euro are planned in the future, in order to win a leading position in Europe in terms of efficiency.

During 2012 Sunoko invested approximately 9.4 million euro in its factories. Investments were oriented towards increasing the processing capacity, reducing production costs, increase of energy efficiency and environmental protection. Also, in 2012 the sugar factory in Vrbas invested 2.3 million euros, of which half a million were spent for the construction of the devices for treatment of flue gas from boilers, while the factory in Pecinci invested nine million euros for the construction of sugar beet pulp steam dryer.

– Sunoko is already the most efficient sugar producer in Europe, and it is far better than the others in Serbia. Thanks to good strategic planning and market knowledge, the company was able to capitalize favorable opportunities, which significantly contributed to the growth of production and export. The company Sunoko, operating with three sugar factories, including the one in Vrbas , annually exports to the European Union about 90 thousand tons of sugar, and between 20 – 50 thousand tons are exported to the markets of other countries, above all the CEFTA countries – said Kostic, adding that with the unification of Europe and Serbia’s entry into a single European market by removing quotas within the EU , Sunoko can expect further development and two or three times higher growth.

For the needs of Sunoko in 2012, 38 thousand hectares of sugar beet was planted of which about 19 ​​thousand hectares for the raw material area of ​​the sugar factory in Vrbas , more than 11 thousand for the sugar factory in Pecinci and eight thousand acres for the factory in Kovačica.
Payment of sugar beet was completed before the agreed deadline for most of the manufacturers. The contracting of planting for 2013 is in progress and the offered price for sugar beet is 40 euros. It is important to emphasize that Sunoko is willing to help producers of sugar beets by allowing advances and in other ways and therefore mitigate the consequences of a catastrophic drought that struck our region.