Nordzucker to close Slovakia sugar factory as depressed European sugar prices hit profitability 

GERMANY – Nordzucker, Germany’s second-largest sugar producer, has announced plans to close its sugar factory in Slovakia at the end of the current production season, citing a prolonged downturn in Europe’s sugar market and declining profitability. 

The facility, located in Trenčianska Teplá, will cease sugar production but continue operating as a commercial logistics hub. Around half of the site’s 180 jobs will be cut, according to a spokesperson for the company. 

“This decision is the company’s response to a challenging market environment and the long-term decline in the profitability of beet sugar production at the Trenčianska Teplá site,” Nordzucker said in a statement. 

While the company did not disclose the production capacity of the Slovak factory, it confirmed that Nordzucker continues to operate sugar production facilities in Germany, Denmark, Sweden, Finland, Lithuania, Poland and Australia. 

Nordzucker said an internal review showed that economic conditions at the Slovak site had worsened steadily over recent years. “Climatic challenges, pest infestations and plant diseases, higher production costs and a decrease in both the quantity and quality of available beet have led to a continuous decline in profitability,” the company said.  

It added that “growing demands for the decarbonisation of sugar production and limited opportunities for efficiency improvements have exacerbated this development.” 

The closure forms part of Nordzucker’s “Fields for Growth” strategy, which focuses on strengthening long-term profitability in a volatile market environment by optimising cost structures and assessing the economic performance of all European sites. 

“We are taking this decision with a view to the future and out of a sense of responsibility for the long-term stability and profitability of our company,” said Lars Gorissen, Chief Executive Officer of Nordzucker AG. 

The announcement follows a profit warning issued by Nordzucker on January 15, when the company said it expected to post an annual operating loss due to depressed EU sugar prices and would intensify cost-cutting efforts. 

EU sugar prices are currently near four-year lows, while global sugar prices are close to five-year lows. Reuters has reported that European producers are asking farmers to reduce sugar beet plantings to address oversupply. 

Nordzucker said the weak market environment, characterised by overcapacity and thin margins, prompted the launch of a broad cost-saving programme in 2025, which was expanded further in 2026. 

The company said it aims to secure long-term profitability through internal measures as it navigates the ongoing downturn in the European sugar market. 

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