IPK OSIJEK, COSUN FACTORIES SIGN LETTER OF INTENT

OSIJEK, Dec 22 (Hina) - The Osijek-based food processing industry IPK dd and the Dutch company COSUN on Wednesday signed a letter of intent initiating the merging of the IPK Tvornica secera d.o.o. from Osijek, "Sladorana" dd from Zupanja, and Tvornica secera dd from Virovitica into a Croatian sugar concern. According to the letter, signed by IPK management director Josip Pavic and a member of the COSUN management, Andre van der Padt, the merger is aimed at creating conditions for successful business operation, especially by reducing production costs and stabilising production prices. The merger project envisages that the three factories within the concern, which will be based in Osijek, will keep their status as legal entities, and prior to the merger, each factory will complete its financial consolidation independently. "This is the first step in creating conditions for the successful operation of the Croatian sugar industry. The project is based on the positive experience of developed countries which produce sugar and we shall do all in our power for the concern to start operating before the spring sugar beet sowing next year", said Pavic. Van der Padt said today's event proved Croatia's interest in the sugar industry. Welcoming the signing of the letter of intent, Croatian Parliament Vice-President Vladimir Seks said he believed the Government would fully support the project. (hina) rml