Germany-based Nordzucker has said that it will close its sugar refinery in Arlov, Sweden, and concentrate its Swedish production at its factory in Ortofta.

The German company will invest €100m in Swedish sugar production in order to further strengthen its competitiveness.

Nordzucker chief operation officer Axel Aumüller said: “We have come far in the planning and I look forward to being now ready for the next stage.

“With the consolidation, we not only ensure a long-term sustainable structure in Sweden, but we also get a modern factory with efficient energy-optimised production and significant savings in the long term.

“An important step to position ourselves as a stable, profitable and competitive player in the sugar market.”

The German firm will invest in Örtofta’s production methods and technologies to make way for the additional capacity.

The company has already taken steps, including modernisation of Örtofta’s sugarhouse, which is expected to be completed by the end of this year.

Plans also include construction of a high rack warehouse and a syrup plant, as well as rebuilding the service centre.

With its new investments, the company expects to reduce energy consumption in Swedish sugar production by 20% and carbon emissions by 18,000t a year.

Managing director for Nordzucker’s Swedish subsidiary Nordic Sugar Katarina Silfversparre said: “I am very pleased that on basis of the decision we, in close cooperation with our beet growers, ensure the deliveries of Swedish sugar to our customers for the future.

“The consolidation will mean a reduction in the number of employees in the Swedish operations. It means a lot to me that we can handle this and the closure of the factory in Arlöv with internal relocation and natural retirement.”

Last month, Nordzucker has agreed to acquire a 70% stake in Australian sugar company Mackay Sugar.