Food and Beverage Business
Finance

Valio Plans Closure of Dairy Factory and Warehouse Operations

Valio Plans Closure of Dairy Factory and Warehouse Operations Valio Food and Beverage Business

Finnish dairy leader Valio is set to close a domestic factory and warehouse as part of a strategic move to enhance production “efficiency and profitability.” This initiative reflects broader trends within the food and beverage industry, focusing on optimized operations amid evolving consumer demands.

Valio plans to shift the operations of its Vantaa facility to a new site located in Joensuu, which is positioned in a thriving milk production area. Additionally, the company intends to transition its warehouse from the Helsinki district of Pitäjänmäki to potential locations in either Riihimäki or Tuusula.

If Valio proceeds with these relocations, 341 employees will be affected; 228 at the Vantaa site and 113 at the Pitäjänmäki warehouse. The Joensuu plant will continue producing cheeses, which are then sent to Vantaa for packaging, ensuring a streamlined supply chain that aligns with current food and drink business dynamics.

The Vantaa facility specializes in manufacturing processed cheeses meant for both local markets and export. Additionally, it produces shredded, sliced cheeses, MiFU, and Oddlygood Veggie products. These changes come in response to local zoning adjustments in the Pitäjänmäki area, which is being converted for residential use, thereby limiting future industrial activities.

Valio is currently engaged in discussions with its staff to explore alternative employment opportunities at other facilities, aiming to mitigate the impact of these changes. Juha Penttilä, Valio’s Executive Vice President of Operations, stated: “In the city of Helsinki’s master plan, the Pitäjänmäki area is designated as an urban residential area, where there will be no possibility to continue industrial activity in the future.” His remarks highlight how industry shifts and urban planning can affect operational decisions.

Moreover, Penttilä noted, “More than 40% of the cheeses processed and packaged in Vantaa comes from Joensuu. The productivity of the production and packaging lines would increase if the products made by the two plants were made at the same production plant. And the need for transport would be reduced.” Such statements underscore the potential benefits of consolidating operations in a single location, a trend echoed in current food and drink consumer trends.

The anticipated closure of the Vantaa facility is expected to occur in phases between 2025 and 2027, while the Pitäjänmäki warehouse’s shutdown may take place by late 2027. Valio operates as a cooperative owned by approximately 3,300 Finnish dairy farms and employs around 4,300 people globally, with 3,700 based in Finland.

This announcement follows Valio’s recent investment of €70 million aimed at modernizing its Seinäjoki milk processing facility. Such investments indicate Valio’s commitment to adapting to food and beverage industry trends while ensuring operational efficiency and product quality.

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