30/06/2005 Vermandoise Group

Revitalisation of the site of the BEAUCHAMPS sugar factory closed in 1999

PRESENTATION by Mr STANISLAS WEDRYCHOWSKI

Secretary General of the VERMANDOISE Group (France)

CEFS – EFFAT – CIBE ConferenceBRUSSELS June 28th 2005

A family-controlled private Group, quoted on the stock exchange (Chairman and Managing Director: J-C DELLOYE), producing sugar for over 100 years – 5th generation

30/06/2005 Vermandoise Group

I - The Vermandoise Group in 2005

Implantation

Beauchamps

in figures 4 production factories 4,000 beet-growers 40,000 hectares 500,000 tonnes of sugar 400,000 hl of alcohol

Staff: Permanent: 640 Seasonal: 260

30/06/2005 Vermandoise Group

II – Background to the closure in 1998, production by the Vermandoise Group was

carried out at 5 sites********

A context of a declining sugar economy Fall in world prices New WTO constraints

The average length of the campaign for the Group’s factories was 66 days, compared to 80 days in the rest of France

The average quota (A+B) per factory in the Group was much lower than for the rest of France and Northern Europe

Handicap in terms of productivity – within the context of the future reshaping of the sugar regime

********

The Group has found an answer to its problems by optimising its beet-growing areas through the transfer of the activities of the Beauchamps sugar factory to other sites

30/06/2005 Vermandoise Group

III - Implementation of the social plan

Staff leaving the factory: 93 10 employees retired 58 employees relocated in the Group’s other 4 factories 18 relocated outside the Group 4 on disablement-sickness leave 3 employees about whom we have no news

Offering all employees resettlement within the Group

Preventing “desertification" of the site after its closure

Personnel situation after the closure

30/06/2005 Vermandoise Group

IV - Revitalisation of the local employment market

External revitalisation External revitalisation

Thanks to the help of an external firm (SODIE) charged with canvassing businesses (SMEs) likely to create jobs, the Vermandoise Group has subsidised:

66 new jobs at five SMEs.

The Vermandoise Group has made loans at very low interest rates allowing these companies to release resources to finance the new jobs.

Cost of the operation: 350,000 Euros

30/06/2005 Vermandoise Group

IV - Revitalisation of the local employment market (cont.)

Revitalisation carried out by ourselvesRevitalisation carried out by ourselves

This is a relational exercise with the Beauchamps town council and the regional Chambers of Commerce to attract the attention of companies interested in making use of sugar factory buildings.

Our offer :Separate buildings with full infrastructures,

ready for immediate use.- low transfer price- area of buildings + land: 15 hectares

30/06/2005 Vermandoise Group

IV - Revitalisation of the local employment market (cont.)5 of the 15 hectares have already been transferred to

companies Setting-up of 7 companies and creation of 35 jobs

Val service (boilermaking, maintenance): 10 jobs Sommalev (handling and lifting equipment, transport, etc.): 6 jobs Protois (general masonry): 5 jobs LDGA (breakdown service): 5 jobs Magasin de meubles (furniture store): 4 jobs Mettelle (storage): 2 jobs Euroteam (sanitary ware): 2 jobs

External hectares belonging to the sugar factory and transferred to the town council for the creation of a business park (20 jobs)

MOPM (press tools): 11 jobs Saint Jacques sawmill: 5 jobs Deme (cutting of materials): 2 jobs Coin pneus - tyres: 2 jobs

In the pipeline: supermarket (50 jobs) on part of the site

30/06/2005 Vermandoise Group

Thank you for your attention