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Valio to Close Vantaa Plant, Pitäjänmäki Warehouse in Operational Overhaul

Finland 13.12.2024
Source: DairyNews.today
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Finnish dairy giant Valio has announced plans to shut down its Vantaa plant and Helsinki Pitäjänmäki warehouse in the coming years, relocating operations to Joensuu and Riihimäki as part of a strategy to boost production efficiency and profitability.
Valio to Close Vantaa Plant, Pitäjänmäki Warehouse in Operational Overhaul
Source: company
The Vantaa plant will close in stages fr om 2025 to 2027, while the Pitäjänmäki warehouse will cease operations no earlier than late 2027, the company said.

Streamlining Production in Joensuu
Valio’s Joensuu plant, located in a key milk production region, will absorb operations from Vantaa. Currently, the Joensuu facility produces one-third of Valio’s cheese output, much of which is transported to Vantaa for further processing and packaging. Consolidating these functions at Joensuu is expected to improve productivity and reduce transport needs, said Juha Penttilä, Executive Vice President of Operations.

“More than 40% of the cheeses processed and packaged in Vantaa come from Joensuu,” Penttilä noted. “By integrating these operations, we enhance efficiency and reduce logistical complexity.”

The Vantaa plant produces all Valio’s processed cheeses for domestic sales and export, as well as shredded and sliced cheeses, MiFU® products, and Oddlygood® Veggie items.

Centralizing Logistics in Riihimäki
The Pitäjänmäki warehouse operations will be relocated to Riihimäki, wh ere Valio already operates a distribution center for Southern Finland.

“Riihimäki emerged as the most cost-effective choice for centralizing our warehouse operations,” Penttilä said. The move is also aligned with Helsinki’s city master plan, which zones the Pitäjänmäki area for residential development, precluding industrial use.

Impact on Workforce
The closures will affect approximately 230 employees at the Vantaa plant and 110 at the Pitäjänmäki warehouse. Valio anticipates creating 100 new jobs in Joensuu and up to 35 in Riihimäki, with efforts underway to support affected workers in transitioning to new roles within or outside the company.

Strategic Focus
Valio employs around 4,300 people globally, with 3,700 based in Finland. The company is owned by 3,300 Finnish dairy farms through cooperatives.

Penttilä emphasized that the relocations align with Valio’s mission to sustain the vitality of its dairy farm owners and ensure the long-term continuity of Finnish food production.

“By maintaining competitive operations, we secure livelihoods for dairy farms and create jobs across Finland,” Penttilä said.

The company will now develop a detailed implementation plan for the relocations and closures.

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