British Sugar to close UK factory amid low European sugar prices
British Sugar plans to close its century-old Cantley factory, putting over 100 jobs at risk as low European prices and high energy costs force a consolidation of the UK's processing capacity.
British Sugar has proposed shutting its Cantley facility in Norfolk from the end of February 2027. The move threatens more than 100 jobs and would end over a century of continuous production at the UK's first sugar-processing plant.
The decision highlights the severe strain on European food processors from the continent's current commodity pricing environment. "This proposal has not been taken lightly. It follows a thorough review of the business and reflects a combination of external pressures, including low average European sugar prices, high energy costs and a market-wide, long-term gradual decline in volumes over time," said managing director Keith Packer. The firm has been loss-making for the past three years.
If the closure proceeds, British Sugar will concentrate its beet processing operations at its three remaining sites: Wissington in west Norfolk, Bury St Edmunds in Suffolk, and Newark in Nottinghamshire. The company confirmed that all employees at Cantley could be affected, and discussions with the Unite union will begin shortly.
The shutdown would ripple beyond the factory gates. Cantley processes an average of 130,000 tonnes of sugar annually, all sourced from surrounding farms. Jerome Mayhew, the Conservative MP for Broadland and Fakenham, warned that transporting beet to the next nearest facility would significantly increase haulage costs for Norfolk farmers and deal a wider economic hit to secondary businesses that support the site.
The proposed closure comes despite an £11m upgrade to the Cantley plant just last year aimed at improving its energy efficiency. Opened in 1912 on the banks of the River Yare in the Norfolk Broads, the facility currently dominates the local village. It has been central to the regional farming industry for generations.
Mayhew called the news "devastating" and said he is seeking an urgent meeting with company executives. "I want to challenge them and some of the assumptions they've made around Cantley, to make sure that every stone has been turned over to see whether this plant can be saved," he said. The Cantley site will continue to operate as normal this year while the consultation process runs its course.
