More than 100 jobs are at risk as one of Britain’s oldest factories faces permanent closure.
The move would end more than a century of sugar production at the historic Norfolk site.
British Sugar, the country’s biggest sugar supplier, has proposed closing its Cantley factory by February 2027 after being hit by high energy costs, falling sugar prices and declining demand.
The factory opened on the banks of the River Yare in 1912 and was the first sugar beet processing plant of its kind in Britain.
It currently employs more than 104 people and produces around 130,000 tonnes of sugar each year.
British Sugar said the site has supported “generations of local families” during its 114-year history.
The company, which is owned by Associated British Foods, has begun discussions with the Unite union and employee representatives about the proposed closure.
Keith Packer, managing director of British Sugar, said: “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.”
European sugar prices have fallen by half in around three years, dropping from approximately 800 (£680) per tonne to about 400.
The decline has been linked to an increase in cheaper global imports, growing demand for healthier alternatives and government measures including the soft drinks sugar levy.
More than 100 jobs are at risk as one of Britain’s oldest factories faces permanent closure
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High electricity prices have also placed pressure on energy-intensive businesses such as sugar manufacturers.
Corporate electricity prices in Britain are around 45 per cent higher than the G7 average and can be four times those paid by businesses in the United States.
Jerome Mayhew, the Conservative MP for Broadland and Fakenham, described the proposed closure as a serious blow to Norfolk and British manufacturing.
He said: “This would be a devastating loss for Norfolk and what remains of British industry more widely. It feels like managed decline for an energy-intensive business, which has been priced out by Labour Party policy.”
The company currently employs more than 104 people and produces around 130,000 tonnes of sugar each year
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Mr Mayhew warned that the closure could remove valuable jobs from a rural area where employment opportunities are already limited. Local farmers could also be affected by the loss of the processing site.
He called on Andy Burnham to begin “visiting farms and rural towns to understand how food security actually works”.
The announcement provoked dismay among farming communities across East Anglia, who face losing a vital local buyer for their sugar beet harvest.
Kabeer Kher, the local authority’s cabinet member for business, skills and agriculture, said: “The news about the closure of the Cantley production plant will be a terrible blow to the workforce.
“We know that losing a job, or facing the prospect of redundancy, can be incredibly challenging, and our redundancy support service can be quickly deployed and work with partner organisations to help people in this situation take their next steps with confidence.”
British Sugar is the sole processor of the nation’s entire sugar beet crop, meaning the closure carries implications well beyond the factory gates for growers throughout the region.
Should the closure proceed, British Sugar would consolidate its operations across three remaining factories: Wissington in West Norfolk, Bury St Edmunds in Suffolk, and Newark in Nottinghamshire.
The company has stated that these sites possess sufficient capacity to sustain current production levels for both retail and industrial customers.
At its peak, British Sugar ran 18 factories across the country; the Cantley shutdown would reduce that number to just three. The firm supplies more than half of all sugar consumed in the UK.
Losing the Cantley plant’s annual output of 130,000 tonnes would increase Britain’s reliance on overseas suppliers, with imports from producers such as Brazil expected to fill the gap.
The factory will continue operating as normal while the consultation process runs its course.