UK's first sugar factory at risk of closure

Breaking news from the markets: UK's first sugar factory at risk of closureImage source, Steve Silk/BBCImage caption, Sugar storage silos at the Cantley siteByOwen SennittNorfolkPublished1 hour agoMore than 100 jobs could be at risk after British Sugar announced plans to shut one of its four factories. The firm is proposing closing its facility at Cantley in the Norfolk Broads to "improve efficiency and support the long-term future" of the UK sugar industry. The Norfolk site was the first sugar-processing factory to open in the UK and has been in operation for more than a century but it could close from the end of February 2027.

Jerome Mayhew, Conservative MP for Broadland and Fakenham, called the news "devastating" and said it could have wider cost implications for Norfolk farmers. Image source, Steve Silk/BBCImage caption, Cantley's sugar beet processing factory has been in operation for more than 100 yearsA consultation will be held over the proposals, which would concentrate British Sugar's beet processing operations at Wissington in west Norfolk, Bury St Edmunds in Suffolk and Newark in Nottinghamshire. Keith Packer, managing director at British Sugar, said: "This proposal has not been taken lightly.

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"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. "British Sugar said all employees at Cantley could be affected and that discussions would begin with Unite, the workers' recognised union, and other employee representatives. Image source, UK ParliamentImage caption, Jerome Mayhew, Conservative MP for Broadland and FakenhamMore from Norfolk:Major chain to open hotel in seaside townHospital plans treatment unit to ease A&E pressureSecond man charged in teenage beach rape inquiryMayhew is calling for an urgent meeting with British Sugar, which he said told him that the firm had been loss-making for the past three years as demand for sugar is on a long-term decline.

He said: "The sugar factory at Cantley dominates the village. It's been right at the heart of our farming industry for over a century now. "All the sugar beet that comes in, comes from the farms around Norfolk, and that's going to have a very significant impact on the wider farming community.

"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. "Mayhew said the closure could mean higher haulage costs for farmers to reach the next nearest processing facility and warned it would have a "wider economic hit" for secondary businesses which support the processing at Cantley. Image source, Owen Sennitt/BBCImage caption, The factory has been a dominant feature of the village and in the Broads landscape for more than a centuryThe factory was opened in 1912 and sits on the banks of the River Yare in the Broads.

Economists are analysing what the news means for the markets.