German sugar manufacturer Nordzucker has announced an investment of €100 million into its Swedish sugar production facilities.
In a release, the firm reported that it will concentrate production at its Örtofta facility, resulting in the closure of its refinery in Arlöv.
Other major investments will include new production methods and technologies, such as the construction of a high-rack warehouse, the creation of a new liquid and syrup facility, and a revamp of the service centre.
Preliminary stages of the investment programme have already been completed, with an in-depth renovation of the Örtofta sugar house already in progress.
The investment programme has a completion date of autumn 2021.
“We have come far in the planning, and I look forward to being [...] ready for the next stage," commented Axel Aumüller, COO of Nordzucker. "With the consolidation, we not only ensure a long-term sustainable structure in Sweden, we also get a modern factory with efficient energy-optimised production and significant savings in the long term. [It's an] important step to position ourselves as a stable, profitable ,and competitive player in the sugar market."
Streamlined Operations
Katarina Silfversparre, managing director of Nordzucker's Swedish subsidiary, Nordic Sugar AB, added, "The consolidation will mean a reduction in the number of employees in the Swedish operations.
"It means a lot to me that we can handle this and the closure of the factory in Arlöv with internal relocation and natural retirement,” added Silfversparre.
Environmental Impacts
The programme will also have significant environmental effects, the company reported. The consolidation of Swedish sugar production will reduce energy use by 20% and lower CO2 emissions by 18,000 tonnes annually.
The introduction of a more streamlined logistics process will mean 3,200 fewer truck transports per year, while more shipments can be taken by rail.
The company reported that these measures, in tandem with a new silo, inaugurated in 2017, and other energy-efficient efforts, have amounted to around €150 million in strategic project investment funds.
One of the largest sugar manufacturers in Europe, Nordzucker also creates bioethanol and animal feed from sugar beets. It has a staff of 3,200 and boasts 18 production and refinery facilities.
In November of last year, the chief executive of Nordzucker said that the company expected to post losses into 2020 because of tough market conditions. The company announced the start of a 'comprehensive transformation process' in December 2018, with a focus on beet and cane sugar, in an effort to combat the volatility of the market.
© 2019 European Supermarket Magazine – your source for the latest retail news. Article by Karen Henderson. Click subscribe to sign up to ESM: European Supermarket Magazine.
