CSR to keep sugar brand name after demerger

Posted by Isobel Drake on 24th September 2009

Building products and sugar company, CSR, is on track in their demerger process, announcing today that the Sugar and Renewable Energy Business will be launched with a “refreshed corporate identity and retaining the iconic CSR retail brand for sugar products”. The company announced plans to separate their sugar and renewable energy operations from the rest of their business earlier this year, with completion likely by the end of March next year.

The changes will see Richard Lee appointed Chair of the Sugar and Renewable Energy business, with Ian Glasson to be the CEO.

“I welcome the opportunity to lead a talented and committed team right across our Sugar and Renewables businesses,” Mr Glasson stated. “Sugar is a natural source of energy for humans as well as providing a sustainable source of electricity and ethanol as a fuel. Hence, in addition to our heritage sugar milling and refining businesses, we have been building a more stable and growing earnings base from “better for you” sugar products and renewable energy and I look forward to building on our current strong market positions as we implement our growth strategies.”

CSR’s Chairman, Dr Ian Blackburne, said that the demerger plans had not yet been finalised but progress was being made.

“While the Board is yet to formally sign-off on the demerger proposal, we have reached initial agreement on key initiatives which are part of establishing two independent, strong and focused companies listed on the ASX,” he advised. “The Board will continue to review all available options to create additional value for shareholders, however, following substantial due diligence, it is our view, that a demerger to create two, more focused and specialised businesses is the outcome most likely to be recommended to shareholders.”

CSR’s Sugar and Renewable Energy business will be launched with a new corporate identity “reflecting its strong heritage in the Australian, New Zealand and international sugar markets”, the company said. It will retain the iconic CSR brand in Australia and Chelsea brand in New Zealand from its refining joint ventures, however.