MK Group to start producing sugar from molasses in January 2014 - New EUR 20 million plant opens in Pecinci

(Miodrag Kostic)

Serbian vertically-integrated agro-industrial conglomerate MK Group plans to put into operation in January a new 20 million euro ($26.7 million) production unit at its sugar mill in the northwestern town of Pecinci, local media reported on Friday.

The new sugar mill will process molasses as input material, putting into use 80% of the molasses which is left after the refining of sugar at three of MK Group's sugar making units in Serbia, news agency Beta reported, quoting MK Group owner Miodrag Kostic.

The new unit will have an annual producing capacity of 35,000 tonnes of sugar which will boost MK Group's total sugar production to some 300,000 tonnes per year. The group's other three production locations are in Vrbas, Bac and Kovacica.

Also on Friday, Kostic signed a deal that would see the European Bank for Reconstruction and Development recapitalise MK Group with 50 million euro and get a 7.0% stake in the company. The funds from the capital hike will be used for financing new investments in the company's sugar mills in Serbia, Kostic said.

MK Group is active in agriculture, tourism, information technology, trade, sugar production and real estate.