Nordzucker temporarily halts construction of its pea protein production facility. - Nordzucker halts construction of its pea protein production facility.
Nordzucker Abandons Plans for Pea Protein Factory in Groß Munzel
In a surprising turn of events, the Nordzucker corporation has decided to scrap plans for constructing a pea protein factory in Groß Munzel, near Hannover. The announcement came during the company's earnings presentation in Braunschweig, where CEO Lars Gorissen revealed that the proposed plant would not be built due to a less favorable market outlook for alternative proteins.
The factory, initially slated for construction in 2024, was set to produce plant-based proteins from peas. Construction preparations began as recently as last November, with the company planning to invest more than 100 million euros and create 60 new jobs upon completion, scheduled for 2026.
However, just a month after the groundbreaking ceremony, the project was abruptly halted, according to Production Director Alexander Godow. The primary reason, he explained, was the dramatic slowdown in the growth of the alternative proteins market. This development made it nearly impossible for the plant to generate profits at a level justifying the significant investment.
The decision to halt construction will incur a cost of 13 million euros for Nordzucker. Of this amount, five million euros have already been spent on planning and engineering, with an additional eight million euros required to dissolve pea supply contracts.
Despite this setback, Nordzucker remains optimistic about the potential for alternative proteins. "We still see great potential for this market," Gorissen stated. In light of the cancelled project, the company is now exploring alternative means to enter the market, such as partnerships and acquisitions. Notably, Nordzucker's focus may not be limited to peas, as Gorissen implied they are starting from scratch in their pursuit of alternative protein sources.
Enrichment Data:The archived search results do not provide specific details on the reasons behind Nordzucker's decision to halt the construction of its pea protein factory. For more precise information, it would be advisable to consult Nordzucker's official statements or press releases regarding the project cancellation.
In response to the unfavorable market outlook for alternative proteins, Nordzucker has halted construction plans for a pea protein factory in Groß Munzel, calling off a project that would have invested over 100 million euros and created 60 new jobs. Despite the setback, the corporation is actively seeking partnerships and acquisitions in the alternative protein market, signaling their ongoing commitment to this sector, potentially exploring various protein sources beyond peas. Meanwhile, the decision to halt construction has incurred a cost of 13 million euros for the company. As they navigate this new approach, Nordzucker pivots towards redefining their employment and community policy in tandem with their new focus on alternative proteins, considering the potential for partnerships with local businesses in areas like finance, lifestyle, food-and-drink, and other Reach-Out sectors.
