In the context of the reform of the EU sugar regime in 2006, EU restructuring aid was made available where a sugar processor renounced sugar quota and undertook to dismantle the associated sugar production facilities. The amount of the aid available was based on the size of the quota involved. The sugar processor concerned had to implement a restructuring plan including social commitments in respect of former employees and environmental commitments related to factory dismantling and site remediation. At least 10% of the aid was reserved for former beet growers and specialized beet machinery growers.
Following its decision to renounce its entire sugar quota and close the sugar plant at Mallow, the company in question qualified for EU restructuring aid of €127m approximately under the relevant EU regulations and in accordance with a High Court ruling in the matter. The aid was paid in two instalments, in June 2007 and February 2008.