Israel: Tate & Lyle to Build Sugar Refinery

The local company Gadot Biochemical Ind. signed an agreement with Tate & Lyle (T&L) to build and operate a new sugar refinery in Haifa Bay, under a new company, Tate & Lyle Gadot Manufacturing Ltd. (TALGAM), which is 65 percent owned by T&L, with the remainder 35 percent owned by Gadot. The transaction is to be completed not later than 30 October 2006, with a price tag of USD 18 million.
The operation is part of T&L strategy in response to the sugar reforms in the European Union (EU), which, in addition to the 2005 ruling of the World Trade Organisation (WT) on illegally subsidised EU sugar exports, are expected to cut EU sugar production and severely limit her exports. The new company would allow T&L to continue supplying the Israeli market, and explore diversified investments in the health and food ingredients segment.

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