Germany's Nordzucker closing sugar factory in Slovakia in depressed market

Suedzucker AG

05/02/2026 14:27

HAMBURG, Feb 5  (Reuters) - Germany's second-largest sugar refiner Nordzucker said on Thursday it would close its sugar factory in Slovakia at the end of the current production season as Europe's sugar market remains depressed.

The site at Trencianska Tepla in Slovakia will still be used as a commercial logistics hub.

"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 Trencianska Tepla site," Nordzucker said.

The company did not disclose the capacity of the factory being closed. It has other sugar production factories in Germany, Denmark, Sweden, Finland, Lithuania, Poland and Australia.

Nordzucker warned on January 15 it would swing to an annual operating loss on depressed EU sugar prices that are hitting producers across the European market and said it would seek cost savings.

Germany's largest sugar producer Suedzucker  also said in January that low sugar prices would pressure earnings,while France's Tereos reported aplungein first-half profits in November.

EU sugar prices are around four-year lows and world prices  are near five-year lows, with Reuters reporting European producers are asking farmers to cut sugar beet plantings.

"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 Nordzucker CEO Lars Gorissen.

The depressed sugar market, with overcapacity and low margins, meant Nordzucker launched a comprehensive package of cost-saving measures in 2025 and supplemented it in 2026.

The company said it intended to secure its long-term profitability through its own efforts.

 (Reporting by Michael Hogan. Editing by Mark Potter)

 ((michael.j.hogan@thomsonreuters.com; +49 172 671 36 54; Reuters Messaging: michael.hogan.thomsonreuters.com@reuters.net/))