PARIS (Reuters) - French sugar maker Tereos said on Thursday Tereos Commodities would close its offices and halt sugar trading in Kenya and South Africa by the end of March 2020 as part of a global review of its strategy.
Tereos, which has reported a sharp drop in profits in the last fiscal year due mainly to a slump in global prices for sugar, has been overhauling its trading branch in recent months.
“Tereos Commodities is planning to develop its organization in certain geographies,” it said in an emailed statement to Reuters.
“This would be achieved by closing its offices in South Africa and Kenya, and ending its sugar trading and distribution activities in these countries on March 31, 2020, at the latest.”
Tereos had said when it opened its trading desk in Nairobi in 2016 that the aim was to meet growing African sugar demand.
Tereos also said that Patrick Dean, head of Tereos Commodities’ white sugar unit, was leaving the company on Thursday.
Dean led Tereos Commodities at its launch in 2014 and was Global Head of Sugar Merchandising and Distribution before being asked to head the white sugar unit this year.
His teams would report to Alexandre Leite, executive director of Tereos Commodities Sugar.
Tereos Commodities also has offices in France, Switzerland, Singapore, Brazil and India.
Reporting by Sybille de La Hamaide; Editing by Geert De Clercq and Alexandra Hudson