Fazer aims to boost efficiencies through plant closure in Finland

Fazer has announced plans to close its production facility in Kaarina, Finland, a move to increase efficiency in the production of its Yosa oat products.

The Finnish food company said expanding and modernising the facility to meet the large-scale food production required by the growth of the oat business would require sizeable investments that, given the factory’s location, “would be difficult to carry out”.

Fazer plans to move the plant’s operations to its facility in Koria, Finland.

“Non-dairy oat-based products play a key role in the growth of our business, both domestically and internationally,” said Heli Anttila, VP supply chain and operations at Fazer Lifestyle Foods.  

“The total market for non-dairy products in Western Europe is growing at a yearly rate of over 17%. Our chief assets in the tightening competition are our strong expertise in the oat business, our consumer-centric product range and our strong brands.

“At the same time, we need to secure our positions in face of the stiffening competition; assure the competitiveness of our production; enable essential additional investments into production; and meet the tightening quality, safety and environmental requirements.”

Fazer has 23 permanent employees in Kaarina as well as 25 employees with fixed-term or on-call contracts. The possible closure of the factory will take place in the autumn of 2020. 

Anttila added: “Increasing the efficiency of our production is necessary to our competitiveness. If we were to settle on closing the factory in Kaarina, we would want to secure for everyone the best possibilities for re-employment. We will liaise with the local employment administrations and offer employment at other Fazer units, where possible.”

In December 2018, Fazer launched a range of oat-based products under its Yosa brand, including oat drinks, oat spreads, overnight oats and Yosa Oat Fraiche.