Tate & Lyle announces the proposal to close its plant in Thessaloniki, Greece by September 2008

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Tate & Lyle announces today a proposal to close its corn wet milling plant in Thessaloniki, Greece by September 2008. The proposal to close this plant has been communicated to the Tate & Lyle European Works Council, Local Works Council and employees, and will be the subject of consultations over the coming weeks. On closure, Tate & Lyle would continue to service its customers in the Greek market from its other plants in the EU. This proposed closure is due to the reform of the EU Sugar Regime, which regulates the production and prices of sugar and isoglucose. The new Sugar Regime comes into effect in July 2006 with the target of significantly reducing sugar production quotas and cutting the sugar reference price by 36%. This will directly reduce the profitability of isoglucose and other grades of glucose produced in Thessaloniki. Unlike sugar processors, who see an almost corresponding percentage reduction in the price that they pay for sugar beet, there will be no reduction in the price of maize for the production of isoglucose. As a result, the Thessaloniki plant would be driven into a loss making position. Clive Rutherford, Chief Executive of Tate & Lyle Food & Industrial Ingredients, Europe said “It is with regret that we announce this proposal. Despite the considerable progress made in recent years, it has not proved sufficient to offset the inherent cost structure of the plant, which arises from the high cost of local maize and the plant’s small scale (necessitated by the restricted local market). These factors make the plant highly vulnerable to the consequences of the EU reform and whilst the plant may be able partially to absorb the negative impact of the reform during the early period of the new Regime, possibly up to September 2008, after that time we expect that the plant would no longer be viable under the Regime”. Greek translation available on request from press office
Greek media enquiries contact: John Apsouris, Dryllerakis & Associates
Mobile: +306934887081
Email: [email protected]

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About Tate & Lyle: 
Tate & Lyle PLC is a leading global provider of food and beverage ingredients and solutions. Supported by our 160-year history of ingredient innovation, we partner with customers to provide consumers with healthier and tastier choices when they eat and drink. We are proud that millions of people around the world consume products containing our ingredients every day.

Through our expertise in sweetening, mouthfeel and fibre fortification, our Food & Beverage Solutions business develops solutions which reduce sugar, calories and fat, add fibre, and provide texture and stability in categories including beverages, dairy, bakery, soups, sauces and dressings. Our Primary Products business produces nutritive sweeteners, industrial starches used in paper and packaging, acidulants and products used for animal nutrition.

We have around 4,400 employees working in more than 60 locations across 30 countries. Tate & Lyle’s purpose is Improving Lives for Generations and through our purpose we believe we can successfully grow our business and have a positive impact on society. We live our purpose in three ways, by supporting healthy living, building thriving communities and caring for our planet.

Tate & Lyle is listed on the London Stock Exchange under the symbol TATE.L. American Depositary Receipts trade under TATYY. In the year to 31 March 2021, Tate & Lyle sales totalled £2.8 billion. For more information, please visit https://www.tateandlyle.com or follow Tate & Lyle on TwitterLinkedin or Facebook.