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Valio Building €170 Million Snacks Plant

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Valio Building €170 Million Snacks Plant

Valio Building €170 Million Snacks Plant
May 19
10:51 2014

Fiinsih dairy group Valio is to commence the construction of a new snacks plant in Riihimaki, near its existing Valio Herajoki plant. The value of the investment in the building is around Eur75 million and the total budget for the snacks plant amounts to around Eur170 million. Valio is also to invest Eur2.5 million in increasing cottage cheese capacity at the company’s Seinäjoki plant.

In the first phase, Valio will build a plant with a floor area of around 18 000 square metres on a plot of land purchased last year, enabling the environmentally sound, efficient and flexible production of snacks. The earthworks for the construction project will start immediately and the plant is slated for completion by the end of 2016. The plant itself will create dozens of new jobs in production and warehousing operations.

Valio’s present dairy in Riihimäki is 45 years old and will continue liquid milk production after the new plant has been completed. Valio fresh dairy products are enjoyed in neighbouring markets as well as Finland.

Sales of Valio products, especially milks and yoghurts manufactured in Finland, have increased markedly in Russia and Sweden in recent years. The demand for value added products, such as Eila® items, yoghurts and high protein products is expected to continue to grow.

In Sweden, Valio’s largest product groups are yoghurts and Valio Eila®. In Russia, growth stems primarily from fresh dairy products, while Oltermanni® cheese and Valio butter also sell in large volumes and contribute significantly. In bothRussiaandSweden, net sales expressed in euros increased by more than 10% in 2013.

In Sweden, Valio’s Eila® brand has captured over 55% of the lactose free products market.

“The new plant will enable us to expand our snack products range in Sweden further. We need to be nimble and responsive, especially in the rapidly growing lactose free yoghurt segment,” says Iiro Wester, Managing Director of Valio’s Swedish subsidiary. In Russia, fresh dairy products have been the fastest growing category of our exports to the country in recent years.”

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