Valio Considers Relocating Kauhava Plant Operations to Boost Efficiency

Valio Considers Relocating Kauhava Plant Operations to Boost Efficiency

(IN BRIEF) Valio has announced plans to potentially close its Kauhava factory, acquired from Raisio in March 2025, and relocate production to either its Oulu or Joensuu sites to enhance efficiency and profitability. The company has initiated change negotiations involving all 11 employees at Kauhava, with aims to offer alternative roles where possible. The proposed move, driven by operational and economic factors, aligns with Valio’s broader strategy to optimize production while supporting its farmer-owners and sustaining domestic food production. A final decision is expected after the six-week negotiation period, with closure likely by late 2025 if implemented.

(PRESS RELEASE) HELSINKI, 17-Apr-2025 — /EuropaWire/ — Valio has announced plans to potentially relocate the operations of its Kauhava facility—acquired from Raisio plc in March 2025—to either its Oulu or Joensuu plants, a move aimed at streamlining operations and enhancing profitability. If executed, the transition would lead to the closure of the Kauhava plant and affect all 11 employees currently working there.

This development comes after Valio’s acquisition of Raisio’s plant protein business, which included fixed assets and the popular Härkis® and Beanit® brands. The equipment from the Kauhava factory, which produces plant-based protein products, was part of the deal, and employees at the site transitioned to Valio’s payroll upon acquisition.

Valio will begin official change negotiations on April 22, 2025, citing economic and operational reasons. These talks, expected to span six weeks, will explore the potential shutdown of the Kauhava facility by late 2025. While the full workforce is within the scope of the negotiations, Valio emphasized that it will strive to offer new roles at its other sites to as many employees as possible.

Juha Penttilä, Executive Vice President, Operations at Valio, acknowledged the impact on personnel: “The Kauhava team has performed admirably under both Raisio and Valio. While such negotiations are never easy, we are committed to handling them with transparency and care.”

Valio’s Joensuu plant currently manufactures 25 million kilos of cheeses and cream cheese annually, with familiar products such as Valio Polar®, Valio Salaneuvos®, and Valio Viola® produced there, along with milk powder. The Oulu plant, with an annual output of 64 million kilos, produces a wide range of dairy items including yoghurts, sour milk, fermented milk, food preparation products, and ice cream.

As a company owned by around 3,200 Finnish dairy farms, Valio employs 4,300 people—3,700 of whom are based in Finland. Penttilä highlighted the broader business rationale: “Sustaining competitive operations is essential not only for our profitability but also for supporting our owners—Finnish dairy farms—and maintaining domestic food production across the country.”

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SOURCE: Valio