Fazer Group: plans to close operations in Karkkila

Helsinki / FI. (fg) Finland’s Fazer Group plans to close its operations in Karkkila and to move the production of xylitol pastilles and chewing gum to Fazer’s factory in Lappeenranta. Fazer will start collaboration negotiations affecting all employees at the Karkkila factory.

To better respond to the evolving consumer demand, Fazer needs to develop the production of the xylitol products to enable efficient development and production of more consumer-driven products, more compelling and innovative tastes and shapes and different sizes and formats of packaging. Fazer has evaluated different options for developing the production of the xylitol pastilles and chewing gum and considers closing the production facility in Karkkila and to move its operations to Fazer’s factory in Lappeenranta.

Karkkila does not have the same development possibilities as Fazer’s factory in Lappeenranta. Transferring the production to Lappeenranta would enable the needed efficiency and capability building to remain competitive in the long run. Consequently, Fazer will start collaboration negotiations affecting all employees at the Karkkila factory.

«Fazer believes in Finnish production. By focusing the production to bigger units, we can manufacture high-quality products more efficiently, which is a prerequisite for us to maintain our competitiveness. Also, when different types of products are manufactured in one factory, we are able to provide our employees opportunities to expand their knowhow and skills and hence ensure the continuation of our operations also in exceptional circumstances. We have since 2015 invested nearly 25 million euros in the Lappeenranta factory and will continue to develop our production there also in the future,» says Mika Salomaa, Head of Fazer Confectionery Supply Chain.

Fazer supports employees in change

Fazer will start collaboration negotiations involving the entire personnel in Karkkila factory. Fazer employs 22 permanent employees in Karkkila as well as 5 employees with on-call contracts. The possible closure of the Karkkila factory would take place in winter 2021. If the negotiations should lead to redundancies, Fazer would support those whom the termination of employment would affect. The employer wants to further their opportunities of finding new employment and cooperates with the local employment administration.