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Dear shareholders and business partners
2007 was earmarked by events related to the restructuring of the sugar industry in the European Community. All activities of the company Tovarna sladkorja d.d. (hereinafter ’TSO’ or ’Company’) were defined by the Council Regulation (EC) No. 320/2006 of 20 February 2006 on establishing a temporary scheme for the restructuring of the sugar industry in the Community and amending Regulation (EC) No. 1290/2005 on the financing of the common agricultural policy, and the Council Regulation (EC ) No. 968/2006 of 27 June 2006 on laying down detailed rules for implementation of the Council Regulation (EC) No. 320/2006.
The Company was informed by the government in February 2007 that its application for the restructuring aid was endorsed. In addition, the Company was officially informed in June 2007 that funds required for the restructuring aid are available in their full amount. Thus, green light was given for conducting all restructuring procedures. Pursuant to the restructuring plan, the packaging facility as well as the sugar silos will remain active.
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Due to negative impacts of the sugar reform, 75 sugar manufacturing plants in Europe were closed in 2006 and 2007. There are some major plants bigger than TSO and from areas, where sugar beet was produced far more efficiently than in Slovenia (e.g. Hungary). The fall of the target price for sugar beet and major increase of the price for cereals resulted in a serious lack of interest in producing sugar beet in many EU countries and this was the case also in Slovenia.
The restructuring process is connected with many very complex and unpleasant procedures that affects and often ruins also relations among employees. Loosing ones job in such a small and underdeveloped region that copes with a serious level of unemployment presents a major problem, irrespective of well-paid termination pays.
Most of our efforts focused on searching for an alternative economic activity that could be conducted on the Company’s site, which is well-equipped in view of the infrastructure. As for this issue the Company cooperates with many Slovenian companies and institutions and hence justifiably expects support from the government.
The operating result is within the targeted figures and reflects the economic position of the Company as well as consequences of the respective reform. We have certainly made the best of this situation and optimized the result as much as possible.
We would like to express our deepest gratitude to all employees, the supervisory board, the works council and the labour union for the patient and correct cooperation in extremely difficult circumstances, as they all significantly contributed to an efficient result and enormously eased the operations in 2007.
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© 2002- Tovarna sladkorja d.d., vse pravice pridržane.
Izvedba: hipergo>>>
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