Nordzucker scales back sugar operations in Finland

The German sugar group Nordzucker is stopping the refining of raw sugar in Finnish Porkkala and is closing several production lines there. Earlier, the group already announced that sugar production at the Slovak factory Trenčianská Teplá will stop. The measure comes as no surprise. Nordzucker points to a challenging global sugar market, with pressure on margins and a deteriorated business climate in Finland. The measures are part of a broader strategy by the sugar group to reduce costs and strengthen its competitive position in a difficult market climate. By simplifying the organization, the company wants to improve financial performance. In Porkkala, refining activities will disappear completely, as will the production of, among other things, sugar cubes, icing sugar and pearl sugar. These products will from now on be supplied largely from other Nordzucker factories. According to the group, the impact on the rest of the chain remains limited. Sugar beet cultivation in Finland and the contracts with growers remain unchanged. CEO Lars Gorissen of Nordzucker speaks of a necessary step: the local subsidiary acts on the basis of regional market conditions, but at the same time contributes to the group's long-term strategy, Fields for Growth. That strategy is about cost optimization and growth outside the European sugar market. Factory remains in operation The reorganization has direct consequences for staffing. Up to 26 jobs will disappear in Porkkala and in quality control. The implementation of the plans will continue until the end of 2026. Porkkala will remain active in liquid sugar (such as molasses and syrups), special products, packaging and logistics, energy supply and supporting functions such as laboratory and maintenance.