Valio is planning to relocate the Kauhava factory operations it acquired from Raisio plc in March 2025 to Oulu or Joensuu. If implemented, the plan would mean the closure of the Kauhava factory. With the planned relocation, Valio aims to improve production efficiency and profitability.
In March 2025, Valio acquired Raisio plc’s plant protein business, the related fixed assets and the Härkis® and Beanit® fava bean brands. The fixed assets include the production equipment of the factory that makes plant protein products in Kauhava. In connection with the acquisition, the Kauhava factory personnel transferred to Valio’s payroll.
On 22.4.2025, Valio will begin change negotiations on the closure of the Kauhava plant; a total of 11 employees, i.e. the factory’s entire workforce, are within the scope of the negotiations. Based on the current estimate, the possible personnel reductions will target at most the same number of employees. If the plans are implemented, Valio aims to offer as many people as possible jobs at its other sites.
The grounds for the negotiations are production and economic reasons. The negotiations will last six weeks, and no decisions have been made at this stage. Based on the current estimate, the possible closure of the Kauhava plant would take place late this year at the earliest.
“With the planned relocation of production, we are continuing to pursue production efficiency and profitability improvements in line with our strategy,” says Valio’s Juha Penttilä, Executive Vice President, Operations, in charge of production facilities and logistics.
“The personnel at the Kauhava factory have done a good job under both Raisio’s and Valio’s ownership. Change negotiations involving personnel reductions are always very unpleasant, and we want to handle the negotiations as well as possible from the personnel’s point of view,” Juha Penttilä adds.
The Joensuu plant annually produces some 25 million kilos of cheese blocks, cheeses packaged for consumers and cream cheeses. The production plant’s main products are Valio Polar® cheeses, Valio Salaneuvos® cheeses and Valio Viola® cream cheeses. In addition, the plant produces milk powders. The Oulu plant’s annual production volume is around 64 million kilos. Products produced at the Oulu plant include milk, sour milk and cream, yoghurt, fermented milk, kefir, food preparation products and ice cream.
Valio employs around 4,300 people, 3,700 of them work in Finland. Valio is owned by some 3,200 Finnish dairy farms through cooperatives.
“With competitive business operations, we ensure the vitality of our owners, i.e. the dairy farms, and secure the continuity of domestic food production. In the long term, this also enables us to create jobs and livelihoods around Finland,” notes Juha Penttilä.