Finnish dairy giant Valio is planning to shut a domestic factory and warehouse in a bid to boost the “efficiency and profitability” of its production.
Valio wants to “relocate” the operations at its Vantaa plant to a facility further north in Joensuu. It is also preparing to move its warehouse operations in the Helsinki district of Pitäjänmäki to sites in either Riihimäki or Tuusula.
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If the company pushes on with the moves, they would impact 341 employees across both locations – 228 workers at the Vantaa facility and 113 at the Pitäjänmäki warehouse.
The Joensuu plant, situated in a “vibrant” milk production region, manufactures cheeses that are transported to Vantaa for packaging, Valio said.
Valio’s Vantaa facility is responsible for producing processed cheeses for both domestic consumption and export.
It also produces shredded and sliced cheeses, along with MiFU and Oddlygood Veggie products.
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By GlobalDataThe relocation of the Pitäjänmäki warehouse comes amid zoning changes in the area, which is designated for residential use, precluding future industrial activities, the company added.
The Pitäjänmäki warehouse in Helsinki is a logistics hub for Valio’s cheeses, butter and spreads.
Valio has initiated talks with staff. The company said it is aiming to provide alternative employment at other sites for as many workers as possible.
Valio executive vice president of operations Juha Penttilä said: “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.
“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.”
The potential closure of the Vantaa plant is expected to happen in phases between 2025 and 2027, while the Pitäjänmäki warehouse may shut by late 2027.
Owned by around 3,300 Finnish dairy farms via cooperatives, Valio employs approximately 4,300 people globally, with 3,700 based in Finland.
The news follows Valio’s recent announcement of a €70m investment to “modernise and overhaul” the Seinäjoki milk processing plant.
