Trade Resources Company News Nordic Sugar to Stop Production of Fiber Products at Swedish Facility

Nordic Sugar to Stop Production of Fiber Products at Swedish Facility

Nordic Sugar, which supplies sugar in the North European market, is halting the production of Fibrex and Fipec at its Swedish factory in Kopingebro.

The company said that after 30 successful but challenging years on the fiber market, the production of the two trademarks at the factory is coming to an end and ten employees will be given notice of termination because of no work. 

Nordic Sugar presented a notice and plans for closing to the workforce earlier this week.

The company's decision was based on changes on the fibre market and Fibrex's inability to compete with newer fibre products.

The company noted that the entire Fibrex and Fipec product range will be available during the phasing out period and the existing customers will be supplied over approximately the next twelve months.

Unions are now in negotiations with Nordic Sugar.

Fibrex, is a dietary fibre made from sugar beets after all the sugars have been extracted. Nordix Sugar claims that the product has unique characteristics and is ideal for use in baking and other cooking applications.

It is claimed to have a water-holding capacity of 3-4 times its own weight and has good potential in health applications.

Nordic Sugar managing director Katarina Silfversparre said: “It is unfortunate information that we give to our employees today, and we have complete respect for the feelings it causes. However, the decision is necessary.

“We have carried out several measures to improve profitability, but the Fibrex business has not developed like we wanted. This, together with the new conditions on the sugar market from 2017, mean that the measure is necessary to ensure the company's long-term competitiveness.”

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