Nakskov, Denmark – Nordzucker plans to cease sugar production at its Nakskov plant in Denmark in January 2027, following the 2026/27 campaign. The company cites overcapacity in the European sugar industry and the plant’s high investment requirements as key reasons for the decision. At the same time, Nordzucker anticipates a further decline in European sugar demand—a trend that could be exacerbated by the planned sugar tax in Germany. Consequently, up to 150 jobs in Nakskov will be affected. However, packaging and service operations will be retained, while Danish sugar production will be consolidated at the Nykøbing site.
Sugar prices plummet – losses rise
The difficult market situation has already taken a heavy toll on the balance sheet. In the 2025/26 fiscal year, revenue fell to around €2.34 billion. Meanwhile, the operating result dropped to minus €226 million. A year earlier, Nordzucker had posted a profit of €100.5 million. According to the group, two highly productive beet harvests increased inventory levels and drove down sales prices.
Image: Shutterstock
Recent market data also reflect the sharp drop in prices. On August 27, the EU Commission released updated figures on the European sugar market. The current price for white sugar stands at around 513 euros per tonne, down from 619 euros in 2024—a decline of more than 17 percent. However, manufacturers are also facing pressure from high inventory levels and overcapacity.
Nordzucker consolidates sugar production in Nykøbing
The Nakskov facility has been part of the Danish sugar industry since 1882 and was once Northern Europe’s largest sugar factory. Now, after 144 years, actual production there is coming to an end. The site will not disappear entirely, however; the company will continue to handle packaging and service operations there. The Nykøbing plant is set to take over all Danish sugar production in the future.
Nevertheless, this move deals a heavy blow to the island of Lolland. Up to 150 employees could lose their current jobs once the upcoming processing campaign concludes. Consequently, the company plans to discuss potential solutions with employee representatives and the local municipality. The decision also affects a long-established industrial employer in a region that is comparatively weak in terms of economic structure.
Third Major Capacity Adjustment for 2026
The Nakskov project marks the Group’s third major capacity adjustment within just a few months. Sugar production at the Trenčianská Teplá site in Slovakia ceased in early 2026, although the facility continues to operate as a sales and logistics hub. Additionally, the company is discontinuing raw sugar refining and several production lines at its Porkkala site in Finland. Through these moves, Nordzucker is significantly scaling back its European production network.
At the same time, the product portfolio in Denmark is changing; Nordic Sugar will discontinue Danish production of organic beet sugar following the 2026 campaign. This restructuring thus extends beyond the job cuts in Nakskov. Meanwhile, the Group is pursuing growth in areas such as cane sugar, alternative proteins, and functional food ingredients, while traditional European beet sugar production is seeing a reduction in capacity.
Author: Blackout News
Sources: Bild (27.08.26) – Økologisk Nu (26.08.26) – Nordzucker (25.08.26)