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European Bank subscribes for shares in Thurn Taxis Dobrovice, oldest established Czech sugar company
The European Bank for Reconstruction and Development today signed an agreement to participate in a capital increase of Cukrovar Dobrovice, more widely known as Thurn Taxis Dobrovice, and to subscribe for up to 131,579 new shares or 32.9% of the share capital. The company, which was the first sugar refinery to be privatised in the Czech Republic, will use the funding to modernise and increase the capacity of the sugar plant.
Ron Freeman, First Vice President for Merchant Banking, said "Thurn Taxis Dobrovice is a well managed and ambitious company, supplying leading food companies in its domestic market. The Bank's funding will enable the company to strengthen its market position. It also shows our commitment to support the Czech food industry".
The modernisation programme will allow the company to further improve its productivity and the quality of its products. The programme will also address a number of environmental problems at the plant, including the replacement of its coal boilers with a gas powered generator. Thurn Taxis Dobrovice is perceived to be at the leading edge of the sugar industry in the Republic, and by modernising its refinery will lead the way in the restructuring and modernisation of the Czech sugar industry.
The company was originally founded in 1831 by the Thurn Taxis family and was privatised in August 1992 with the backing of Sucreries et Distilleries de L'Aisne of France, who remain the majority shareholders with 56.5%. Other shareholders in Thurn Taxis Dobrovice include the City of Dobrovice (1.0%), a group of Czech sugar beat growers (4.0%) and the Czech National Property Fund (5.6%) whose shares are in the process of being distributed to the public.
The Czech Republic has a strong tradition in sugar manufacturing and was, before the second world war, one of the leading European producers of sugar.
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