Germany’s second-largest sugar refiner Nordzucker is planning to build a sugar refinery in Zambia at a cost of about $300 million, a newspaper reported on Monday.
Plans for a plant to produce raw sugar are at an advanced stage and have been sent to the company’s advisory board, daily Hannoverische Allegmeine Zeitung said without citing sources.
A Nordzucker spokeswoman would not comment specifically on Zambia but confirmed that the company “is intensively examining opportunities to invest in the international sugar market”.
“The limited chances for expansion in Europe at a time of rising European production and the end of (European Union) sugar market regulation from 2017 means Nordzucker is looking at attractive growth areas such as Africa and Asia, where, in contrast to Europe, demand for sugar is increasing significantly,” the spokeswoman said.
The aim is to begin raw sugar production in these regions, possibly with local or international partners, she added.
The European sugar market is highly regulated at the moment, but the EU is withdrawing production quotas and price regulation in 2017. (Reporting by Michael Hogan; Editing by Jason Neely and David Goodman)