Hungarian sugar industry ltd
The Hungarian Sugar Industry Joint Stock Company was one of the leading companies in the sugar industry in the 19th and 20th centuries. After a few years of difficulties following its foundation, with the support of the Hitelbank, it developed into a major company and flourished in the first half of the 1910s. Its success is reflected in the fact that, despite the difficulties of the First World War and the subsequent world economic crisis, it managed to increase its foreign holdings and interests, and remained important until the end of the Second World War.
The history of the company can be traced back to the Sugar Tax Act (1888). Prior to the Act, sugar factories in Hungary were taxed on the raw material, which put them at a disadvantage in the Austro-Hungarian Empire due to the lower sugar content of Hungarian sugar beet. As a result of the more sensible taxation system that replaced the previous one (the so-called production tax on finished goods), the Zemplén county administration asked the government to support the establishment of a local sugar factory. After the Hungarian Sugar Industry Joint Stock Company was established on 24 February 1889 with a share capital of 6 million Frt, two factories were set up that same year. One of these was built in Szerenc in just 8 months, allowing sugar production to start on 10 December 1889. The other was built in Botfalu, near Brasov. The technology for both factories was designed by Carl Steffen (1851-1927), a sugar technologist of Czech origin who also became a member of the three-man board of directors of the joint-stock company.
Despite the developments, the company had to be reorganized in 1894 due to serious financial and technical problems and in order to increase the production volume.The restructuring and reorganization was carried out by the Hungarian General Credit Bank, which took over the company. From that time on, the post of president was held by the bank's general manager, Baron Zsigmond Kornfeld (1852-1909), until his death in 1909.
Thanks to the outstanding coordination and the developments institutionalized in the 1900s, the company was able to expand its interests after 1910, now under the presidency of Baron János Harkányi (1859-1938). First, in 1911, the company participated with Hitelbank and other partners in the foundation of the Bács County Sugar Factory Joint Stock Company (Újverbász), and in 1912 it acquired a significant share of the shares of the Carl Stummer Sugar Factory Joint Stock Company (Nagyszombat, Nagytapolcsány). Given that the latter was a major competitor of the joint stock company, the purchase led to a significant increase in the value of their shares. Also in 1912, the Satu Mare Sugar Factory Joint Stock Company (Satu Mare-Némét) was established. In 1913, the joint stock company bought the Satu Mare Sugar Factory Joint Stock Company (Satu Mare and its Region Joint Stock Company), which had been established in 1893 but had gone bankrupt by 1913 due to market competition.
The company produced the most refined sugar at this time, although the proportion of refined sugar to processed beet remained low. The company's share in terms of sugar produced in the country was around 8-9%, which in those years meant an annual production of 600 thousand tonnes of sugar.
The First World War brought about many changes in the operation of the joint stock company. The resulting labour shortages and frequent plant shutdowns led to a decline in sugar production. The drop in production was linked to the cessation of refining imported raw sugar in 1914-1915: this was due to the flow of cheap Cuban refined sugar to Europe, which created a sugar surplus. At the same time, the quantities of raw sugar and finished sugar products exported fell sharply, from several million metric tons before the war to a few tens of thousands and a few hundred thousands during the war years. The drop in production and the resulting price maximisation (and sugar buying frenzy) triggered the creation of a centrally managed Sugar Centre, but the ticketing system did not solve the existing problems.
Due to runaway inflation, the situation did not improve in 1919, despite the temporary measures taken by the Soviet Republic. Nevertheless, the joint-stock company survived the war relatively well, as evidenced by the fact that, having exported sugar abroad in significant quantities since 1896 (Balkan countries and westwards via Turkey and Rijeka), it successfully increased its holdings (in the Allied sugar factory in Sofia in 1916 and in the Belgrade sugar factory under the military control of the Austro-Hungarian Empire in October 1917).
Expansion continued in the 1920s. After part of the shares of Selypi Cukorgyár were bought by Hitelbank in 1926, it was merged into Magyar Cukoripari Rt. in 1939. In addition, the joint-stock company founded a sweet preserves factory in 1920 and the Szerencs Chocolate Factory (within the Hungarian Cocoa and Chocolate Factory Joint-Stock Company) in 1921. The increase in the stock exchange price was the result of the entry into the Swiss market in the 1930s with the famous refined sugar. In 1940, on the other hand, Swiss investors bought most of the shares in the Botfalu sugar factory, and the joint-stock company was largely forced out of the Transylvanian factories.
After the Second World War, the group was nationalised in 1948 and placed under the control of the Sugar Board. During the socialist period, the Szerence Sugar Factory gained considerable popularity among the former factories, which produced sugar until 2008, when it closed down for good due to a shortage of sugar beet.
Sources
Sugar industry journal 1950-2007.
Economic, financial and stock market compass 1925-1944.
Great Hungarian Compass 1890-1922.
Press material 1889-1944.
Date of foundation: 24 February 1889 Budapest
Date of cessation: 1948
Founders: Gyula Deutsch, Dr. Vilmos Czell (and Carl Steffen as a board member)
Decisive leaders:
1892-1908 | Baron Zsigmond Kornfeld |
1909-1938 | János Baron Harkányi |
1939-1943/1944 | Dr. Tihamér Fabinyi |
Principal activity: production of raw sugar and finished sugar products
Main products are not set
Seats are not configured
Locations are not set
Main milestones are not set
Author: Róbert Szabó
Date of foundation: 24 February 1889 Budapest
Founders: Gyula Deutsch, Dr. Vilmos Czell (and Carl Steffen as a board member)
Decisive leaders:
1892-1908 | Baron Zsigmond Kornfeld |
1909-1938 | János Baron Harkányi |
1939-1943/1944 | Dr. Tihamér Fabinyi |
Principal activity: production of raw sugar and finished sugar products
Main products are not set
Seats are not configured
Locations are not set
Main milestones are not set
Author: Róbert Szabó
Hungarian sugar industry ltd
The Hungarian Sugar Industry Joint Stock Company was one of the leading companies in the sugar industry in the 19th and 20th centuries. After a few years of difficulties following its foundation, with the support of the Hitelbank, it developed into a major company and flourished in the first half of the 1910s. Its success is reflected in the fact that, despite the difficulties of the First World War and the subsequent world economic crisis, it managed to increase its foreign holdings and interests, and remained important until the end of the Second World War.
The history of the company can be traced back to the Sugar Tax Act (1888). Prior to the Act, sugar factories in Hungary were taxed on the raw material, which put them at a disadvantage in the Austro-Hungarian Empire due to the lower sugar content of Hungarian sugar beet. As a result of the more sensible taxation system that replaced the previous one (the so-called production tax on finished goods), the Zemplén county administration asked the government to support the establishment of a local sugar factory. After the Hungarian Sugar Industry Joint Stock Company was established on 24 February 1889 with a share capital of 6 million Frt, two factories were set up that same year. One of these was built in Szerenc in just 8 months, allowing sugar production to start on 10 December 1889. The other was built in Botfalu, near Brasov. The technology for both factories was designed by Carl Steffen (1851-1927), a sugar technologist of Czech origin who also became a member of the three-man board of directors of the joint-stock company.
Despite the developments, the company had to be reorganized in 1894 due to serious financial and technical problems and in order to increase the production volume.The restructuring and reorganization was carried out by the Hungarian General Credit Bank, which took over the company. From that time on, the post of president was held by the bank's general manager, Baron Zsigmond Kornfeld (1852-1909), until his death in 1909.
Thanks to the outstanding coordination and the developments institutionalized in the 1900s, the company was able to expand its interests after 1910, now under the presidency of Baron János Harkányi (1859-1938). First, in 1911, the company participated with Hitelbank and other partners in the foundation of the Bács County Sugar Factory Joint Stock Company (Újverbász), and in 1912 it acquired a significant share of the shares of the Carl Stummer Sugar Factory Joint Stock Company (Nagyszombat, Nagytapolcsány). Given that the latter was a major competitor of the joint stock company, the purchase led to a significant increase in the value of their shares. Also in 1912, the Satu Mare Sugar Factory Joint Stock Company (Satu Mare-Némét) was established. In 1913, the joint stock company bought the Satu Mare Sugar Factory Joint Stock Company (Satu Mare and its Region Joint Stock Company), which had been established in 1893 but had gone bankrupt by 1913 due to market competition.
The company produced the most refined sugar at this time, although the proportion of refined sugar to processed beet remained low. The company's share in terms of sugar produced in the country was around 8-9%, which in those years meant an annual production of 600 thousand tonnes of sugar.
The First World War brought about many changes in the operation of the joint stock company. The resulting labour shortages and frequent plant shutdowns led to a decline in sugar production. The drop in production was linked to the cessation of refining imported raw sugar in 1914-1915: this was due to the flow of cheap Cuban refined sugar to Europe, which created a sugar surplus. At the same time, the quantities of raw sugar and finished sugar products exported fell sharply, from several million metric tons before the war to a few tens of thousands and a few hundred thousands during the war years. The drop in production and the resulting price maximisation (and sugar buying frenzy) triggered the creation of a centrally managed Sugar Centre, but the ticketing system did not solve the existing problems.
Due to runaway inflation, the situation did not improve in 1919, despite the temporary measures taken by the Soviet Republic. Nevertheless, the joint-stock company survived the war relatively well, as evidenced by the fact that, having exported sugar abroad in significant quantities since 1896 (Balkan countries and westwards via Turkey and Rijeka), it successfully increased its holdings (in the Allied sugar factory in Sofia in 1916 and in the Belgrade sugar factory under the military control of the Austro-Hungarian Empire in October 1917).
Expansion continued in the 1920s. After part of the shares of Selypi Cukorgyár were bought by Hitelbank in 1926, it was merged into Magyar Cukoripari Rt. in 1939. In addition, the joint-stock company founded a sweet preserves factory in 1920 and the Szerencs Chocolate Factory (within the Hungarian Cocoa and Chocolate Factory Joint-Stock Company) in 1921. The increase in the stock exchange price was the result of the entry into the Swiss market in the 1930s with the famous refined sugar. In 1940, on the other hand, Swiss investors bought most of the shares in the Botfalu sugar factory, and the joint-stock company was largely forced out of the Transylvanian factories.
After the Second World War, the group was nationalised in 1948 and placed under the control of the Sugar Board. During the socialist period, the Szerence Sugar Factory gained considerable popularity among the former factories, which produced sugar until 2008, when it closed down for good due to a shortage of sugar beet.
Sources
Sugar industry journal 1950-2007.
Economic, financial and stock market compass 1925-1944.
Great Hungarian Compass 1890-1922.
Press material 1889-1944.