Fazer has announced its decision to move forward with plans for a new chocolate factory, initially paused due to concerns regarding Finland’s fiscal policy.
Last year, the Finnish group suspended its plans to establish a new facility in the southern city of Lahti after the government proposed raising VAT on confectionery. Fortunately, a year later, this proposal was shelved.
Today, Fazer confirmed it will proceed with the project, targeting completion in 2028, with an estimated investment of €400 million ($467.3 million).
“The investment of approximately €400 million is the largest in Fazer’s history, and it holds significant implications for the Finnish food industry,” stated President and CEO Christoph Vitzthum. “This new factory will bolster both domestic and international growth, reinforcing our commitment to the competitiveness of Finnish food production on global markets.”
Located in the Pippo industrial area of Lahti, the facility will cover around 33,300 m2. Notably, Lahti is already home to several Fazer operations, including a crisps factory, a bakery, a gluten-free site, and a xylitol facility.
Fazer’s confectionery portfolio includes popular brands such as Karl Fazer milk chocolate, Geisha, and Duml. Additionally, the company has a presence in the bakery, non-dairy, and plant-based food sectors.
With more than 4,000 employees in Finland, Fazer maintains production plants in Vantaa and Lappeenranta. Furthermore, Vantaa houses its biscuit factory, a major bakery, head office functions, part of the chocolate production, and the Fazer Experience visitor center.
Lahti is also home to various Fazer facilities, including a Mill, a sourdough bread factory, and both gluten-free and xylitol production sites.
In May, Fazer announced an €11 million investment to enhance its rye bread production capacity in Lahti.
In 2024, Fazer reported net sales of €1.18 billion, demonstrating a 1% growth post-currency adjustments. Excluding the dairy division, comparable net sales rose by 3%.
Furthermore, comparable EBITDA increased by 3% to €141.4 million, while the comparable operating result surged by 14% to €75.9 million. Overall, group net sales generated a profit of €34.7 million, marking a recovery from an €86.5 million loss the previous year.