Government injects $ 5.4 million to save sugar-refining company
Morocco, Business, 12/27/2001

The Moroccan government signed on Wednesday a five-year contract-program with a sugar-refining company, Sucrafor, under which it will inject 60 million DH (US$ 5.4 million) in the company.

The company, which is facing financial hardships due to the sector liberalization, started in 1996, will receive the government's support to get loans from banks to carry out its investment program. In exchange, the company undertakes to redress its financial situation, carry out its investment program -estimated at 74 million DH (US$ 6.7 million)- and promote the culture of sugar beet in partnership with local farmers.

The state intervention, part of the restructuring of state enterprises, has also set forth needed incentive measures to modernize the sugar refining plant and re-launch its activity, said prime minister, Abderrahmane Youssoufi, who chaired the contract-program signing ceremony. He added that the government decided to intervene as the hardships experienced by the company threatened to lead to bankruptcy and to social problems (employees firing and difficulties for local sugar beet farmers).

Sucrafor employs some 250 permanent workers and 120 seasonal ones. About 2,000 farmers sell their sugar beet to the company for a total annual amount of 100 million DH (US$ 9.09 Mln).

In the 2000-2001 campaign, it produced 33,000 tons of white sugar, compared to 17,500 tons the previous campaign.

The contract-program was signed by minister of economy, finance, privatization and tourism, Fathallah Oualalou, minister of industry, trade, energy and mining, Mustapha Mansouri, and Sucrafor general manager, Khalid Benchekroun.

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