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Germany’s Nordzucker plans to stop sugar production at its Nakskov factory in Denmark as part of efforts to improve competitiveness and streamline its manufacturing network in the face of continued overcapacity in European sugar output.
Germany’s second-largest sugar producer said its subsidiary Nordic Sugar A/S intends to continue operating the Nakskov site as a service centre for sugar packing after production ends in January 2027.
A Nordzucker spokesperson declined to comment on the factory’s capacity.
The depressed EU sugar market has also caused other factories to close.
Nordzucker cited persistent structural overcapacity in the European sugar industry. It has also reduced capacity in Finland and Slovakia this year.
A review of its operations concluded that ending production at Nakskov would make the strongest contribution to achieving the company’s strategic goals, Nordzucker said, adding that maintaining the long-term efficiency and profitability of the site would require significantly higher investment than at other plants in the group’s network.
The plan is subject to continuing discussions with employee representatives and other stakeholders. Nordzucker said the end of production could affect up to 150 of the 210 jobs at the factory.
Nordzucker said the decision would not alter its commitment to Denmark, where future sugar production would be concentrated at its Nykobing facility.
Jannik Olejas, managing director of Nordic Sugar Denmark, stated: «Our focus now is on helping our affected employees in Nakskov to prepare for the site’s upcoming production campaign, while also supporting them when the time comes to move on to other work elsewhere after that. In the days and weeks ahead, we will engage in a constructive dialogue with the local municipality and employee representatives to find the best possible solutions for as many of our people as possible».
More details: https://www.esmmagazine.com/supply-chain/nordzucker-plans-to-end-sugar-production-at-denmarks-nakskov-factory-320065