Nordzucker Plans $113M Upgrade at Sugar RefineryNordzucker Plans $113M Upgrade at Sugar Refinery

German sugar producer Nordzucker AG plans to invest in €100 million (about $113.4 million) in a project to move sugar production from its facility in Arlöv, Sweden to another sugar refinery in the country, the company announced in a press release Tuesday. 

As sugar production operations are moved from Arlöv to the refinery in Örtofta, Nordzucker also plans to invest in new production methods and technologies for the site. The firm is currently working to modernize its sugarhouse at Örtofta before the 2019 campaign and intends to construct a new high rack warehouse and a liquid and syrup facility in the coming years, and rebuild its service center. Following the move, the Arlöv site is slated to close.

“With the consolidation, we not only ensure a long-term sustainable structure in Sweden, we also get a modern factory with efficient energy-optimized production and significant savings in the long-term,” Axel Aumüller, chief operation officer at Nordzucker, said in a statement. “[This is] an important step to position ourselves as a stable, profitable, and competitive player in the sugar market.”

Completion of the prject is expected in 2021. The company said the move will lower its energy usage in Sweden by some 20% and reduce its CO2 emissions in the country by 18,000 tn/yr. Shifting its operations to Örtofta also allows Nordzucker to use rail transportation more frequently and reduce its reliance on trucks. 

Nordzucker is one of Europe’s largest manufacturers of sugar. 

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