Nordic Sugar claims a series of challenges on the fiber market have led to its decision to stop producing Fibrex and Fipec at its Swedish Köpingebro factory where a notice and plans for closing was presented to the workforce earlier this week.
In an announcement, leading European sugar producers Nordic Sugar says 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 due to lack of work.
Behind the decision lies changes on the fiber market and the fact that Fibrex, despite its unique qualities and functions, has not been successful in competing with newer fiber products, says the company.
“It is unfortunate information that we give to our employees, 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,” says Katarina Silfversparre, MD for Nordic Sugar AB.
According to the Nordic Sugar website, Fibrex or sugar beet fiber, is a natural product made from sugar beet after the sugar has been extracted. This highly functional dietary fiber has a unique composition and excellent characteristics that make it a much appreciated and useful ingredient in baking, meat and other food applications. Fibrex has a water-holding capacity of three to four times its own weight. As a concentrated dietary fiber with an optimum ratio of soluble and insoluble fibers, Fibrex can also be used in health applications.
And Fipec is a dietary fiber supplement made from sugar beet pulp dried in a special steam drying method which retains and improves the properties of beet fibers. Fipec is a concentrated fiber supplement, containing 73 percent fibers, and should make up 3-7 percent of the dog’s daily feed ration. Fipec is food grade quality and is milled, easily to incorporate in pet food formulations.
“Naturally, we understand that this can cause inconveniences to our customers. We will assist with our know-how, so that the phasing out will be as smooth as possible. We will supply our current Fibrex and Fipec customers over approximately the next twelve months. The entire Fibrex and Fipec product range will be available during the phasing out period,” adds Jonas Hildingh, head of industrial sales Sweden & Fibrex.
Unions are now in negotiations with Nordic Sugar.
