Shock in Marchfeld: Leopoldsdorf sugar factory closed after 200 years!

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The closure of the Leopoldsdorf sugar factory marks the end of a 200-year tradition. The reasons are falling sugar prices and market liberalization.

Shock in Marchfeld: Leopoldsdorf sugar factory closed after 200 years!

Agrana is taking drastic measures that are fundamentally changing Austrian sugar production. The sugar factories in Leopoldsdorf and Hrušovany will be closed with immediate effect, which not only ends the decades-long tradition of sugar production in Marchfeld, but also affects around 270 jobs. Agrana's chairman, Stephan Büttner, described the decision as "difficult but necessary" and explained that the closures are part of a strategic realignment to ensure the company's competitiveness in a challenging market, as well as the OTS reported.

The crisis on the sugar market has become much more intense since European sugar production quotas were abolished in 2017. This deregulation led to a massive increase in sugar production in other European countries, which, together with a drastic drop in prices, placed a heavy burden on local beet farmers. According to Ernst Karpfinger, President of the DIE BEET FARMERS association, beet farmers have already drastically reduced their production due to pests and falling prices. Karpfinger calls for a return to stable market conditions and warns of further closures in the industry if there are no changes in European policy to ensure self-sufficiency in sugar.

Consequences for employees

The closure of the two locations is not only an economic but also a social turning point. The 120 affected employees in Leopoldsdorf and 150 in Hrušovany will receive extensive support measures, including retraining and opportunities to work at other Agrana locations. In the future, sugar production will take place exclusively at the Tulln site in Austria, while the Opava site in the Czech Republic will remain. The closure of the Leopoldsdorf sugar factory, which existed for over 200 years, not only ends a chapter for the region, but also the hopes of many beet farmers for sustainable production in the future, as also stated by the The press reported.