Valio Announces Strategic Move to Consolidate Production in Joensuu, Enhancing Operational Efficiency

Valio Announces Strategic Move to Consolidate Production in Joensuu, Enhancing Operational Efficiency

(IN BRIEF) Valio has announced the relocation of its Kauhava factory operations to Joensuu as part of a strategy to improve production efficiency and flexibility. The move, scheduled to be completed by the end of 2025, will transfer production lines from the Kauhava facility, which currently produces Härkis® and Beanit® fava bean products. Valio is committed to managing the transition with respect for employees and offering job opportunities at other locations. The Joensuu plant, a major production hub for Valio’s cheese products, will also begin producing additional plant-based items. The company’s investment in Joensuu supports its broader goal of enhancing the sustainability and competitiveness of Finnish dairy farming.

(PRESS RELEASE) HELSINKI, 4-Jun-2025 — /EuropaWire/ — Valio, Finland’s leading dairy company, has announced plans to relocate the operations of the Kauhava factory, which it acquired from Raisio plc in March 2025, to its Joensuu facility. The current estimate is that the Kauhava factory will close no earlier than the end of 2025. This move is part of Valio’s ongoing efforts to enhance production efficiency, profitability, and operational flexibility, in line with its long-term strategy.

The Kauhava factory currently produces Härkis® and Beanit® fava bean products and employs 11 people. As part of the relocation, the production lines will be transferred to Joensuu at the end of the year, impacting all employees at the Kauhava plant. Valio is committed to managing the transition with sensitivity and offering employment opportunities at other facilities where possible.

Juha Penttilä, Valio’s Executive Vice President of Operations, emphasized the strategic benefits of the move: “By consolidating production at our Joensuu plant, we can further improve our efficiency and profitability while maintaining flexibility in operations. Joensuu has long been a hub for our plant-based product innovations, and this relocation allows us to leverage existing expertise and equipment, ensuring long-term synergies across our operations. Furthermore, the transfer of plant-based production from the Vantaa factory over the coming years will complement this process.”

Valio’s Joensuu plant, which produces about a third of the company’s cheese products, is a major manufacturing hub in North Karelia. The facility, which employs around 200 people, produces 25 million kilos of cheese annually, including Valio Polar®, Valio Salaneuvos®, and Valio Viola® cream cheeses. It also manufactures milk powders. By the end of the year, the Joensuu plant will begin producing cheese slices and later expand to include grated cheese, MiFU® products, and Oddlygood® Veggie items, all previously produced at the Vantaa site.

Over the past decade, Valio has invested tens of millions of euros in the Joensuu plant, contributing significantly to the local economy. The company’s annual economic impact in the region is estimated at EUR 117 million, which includes payments to milk producers, employee salaries, taxes, and local purchases of services and utilities.

While the relocation involves personnel changes at the Kauhava facility, Valio is committed to treating the employees with respect and dignity. “We deeply appreciate the hard work of our Kauhava team under both Raisio’s and Valio’s ownership,” said Penttilä. “We understand that plant closures and job reductions are always difficult, and we are focused on managing these transitions with care, ensuring as many opportunities as possible for affected employees.”

Valio’s efforts to optimize operations and maintain competitive business practices aim to safeguard the long-term sustainability of Finnish dairy farms. “By improving our operations and ensuring the vitality of our dairy farm owners, we are helping secure the continuity of domestic food production across Finland,” added Penttilä. “This strategy will also help generate jobs and support livelihoods in communities around the country.”

With approximately 4,200 employees, 3,600 of whom work in Finland, Valio is owned by around 3,200 Finnish dairy farms through cooperatives.

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SOURCE: Valio