Finland’s Valio to close domestic plant amid falling sales

Finland-based dairy group Valio plans to end production at another local factory, citing declining volumes and increased costs.

In a statement yesterday (18 May), the company said it plans to phase out operations at the site in Oulu by the first half of 2028.

Production will shift to other sites in Riihimäki, Jyväskylä and Joensuu.

“With the planned transfer of Oulu factory’s production, we aim to improve Valio’s production efficiency, profitability and competitiveness,” Juha Penttilä, the executive vice president of operations of Valio, said.

The Oulu facility produces milk, fermented milk, ice cream and plant-based semi-finished products.

Valio intends to maintain its distribution warehouse, sales and support functions within Oulu.

The company is set to start talks with staff regarding the relocation on 25 May, with discussions expected to span three weeks.

While the Oulu site employs around 300 people, the negotiations will cover 264 employees.

Current estimates indicate potential redundancies could impact a maximum of 140 workers.

Valio has committed to offering “open positions” at its other facilities to affected workers.

Penttilä added: “Change negotiations involving possible redundancies are always deeply unfortunate and affect the entire work community. We want to conduct these negotiations as thoughtfully and responsibly as possible, with people at the centre.”

Valio has been consolidating its domestic manufacturing for the past two years.

In June last year, the company announced plans to close the Kauhava fava bean factory it bought from Raisio and move production another plant.

In October 2024, Valio said it will shut its Vantaa plant and relocate operations to a facility further north in Joensuu.

Earlier the same year, the company announced plans to close two food and drinks manufacturing facilities in Finland – one located in the south-western coastal city of Turku and the other in the Pitäjänmäki district near Helsinki.

Valio has a total workforce of around 4,600 people, with roughly 4,000 based in Finland. It operates under a cooperative ownership structure held by about 3,000 Finnish dairy farmers.

The dairy group’s total net sales for 2025 climbed 6.3% year-on-year to €2.42bn ($2.82bn). Domestic net sales accounted for €1.52bn of the total, while international operations brought in €900.7m.

The company's milk margin rose 6.4% to €1.04bn in 2025, while its milk return metric grew 7.3% to 56 cents per litre.

"Finland’s Valio to close domestic plant amid falling sales" was originally created and published by Just Food, a GlobalData owned brand.