Oslo / NO. (ok) The Board of Directors of Norway’s Orkla ASA has decided to consolidate production of biscuits in the Group, and to build a new biscuits factory outside Riga, Latvia. This is part of the Group’s strategy of consolidating production in fewer and more efficient plants.
«By investing in a new, modern factory and concentrating production in one location, we can strengthen our future competitiveness and innovative ability and at the same time reduce our climate footprint. The new production plant will allow us to focus investments on new technology, increase cost effectiveness and create a stronger production platform», says Ann-Beth Freuchen, Orkla Executive Vice President and CEO of Orkla Confectionery + Snacks.
Consequently, the current biscuits production operations in Kungälv and Riga will be closed down and relocated to the new factory. This change will be carried out by the end of 2022.
Biscuits are an important category for Orkla, in which the Group has strong market positions in the Nordics and Baltics and export sales.
Several different alternatives for the future production of bisquits have been considered and the final decision is to build a new factory outside of Riga. In compliance with Swedish labour law, negotiations have been in progress since January between the employee representatives at the factory in Kungälv and the management of Orkla Confectionery + Snacks Sverige.
Today, around 350 persons are employed at the plant in Kungälv. When production moves in 2022, a product development centre will remain in Kungälv.