A lack of profitability in the production and sale of glucose syrup means Lantmännen now intends to change the production structure at Lantmännen Reppe. Lantmännen Reppe has entered into negotiations with union representatives to discontinue production of glucose syrup and close down its factory in Växjö in Sweden.
“Lantmännen’s Energy Sector is one of the largest producers of sustainable bioenergy products in Sweden. The Sector is an important growth area for Lantmännen and as such key to developing this business and generating profitable growth in all our operations within the Sector. Unfortunately, we cannot see any possibility of making our glucose syrup business profitable with the production structure and production volume we have in Växjö,” says Magnus Kagevik, Head of the Energy Sector and Acting MD of Lantmännen Reppe.
The three companies within Lantmännen’s Energy Sector – Lantmännen Agroetanol, Lantmännen Aspen and Lantmännen Reppe – produce products such as sustainable ethanol, protein feed, carbonic acid, starch products, alkylate petrol, spirits, gluten and glucose syrup.
Lantmännen aims to produce and market sustainable and profitable products. The market for glucose syrup – a product that is difficult to differentiate – is extremely competitive and despite several evaluations and improvement efforts at the factory, the business is not financially sustainable. A decision to close the plant can affect around 20 jobs there and the affected co-workers have been informed of the planned change today.
“Naturally, having to tell our employees at Reppe of our intention to end production of glucose syrup is difficult. We have initiated negotiations concerning the closure of operations in Växjö in order to find suitable solutions for the personnel affected,” Kagevik says.
Lantmännen intends to end production in Växjö by the end of the year and the plant will remain in operation until then. Lantmännen Reppe will continue to process wheat and manufacture gluten, spirits, starch and feedstuffs at its factory in Lidköping.
For more information, please contact:
Lantmännen Press Office
Phone: +46 10 556 88 00