Valio will relocate the Kauhava factory operations it acquired from Raisio plc in March 2025 to Joensuu. Based on the current estimate the Kauhava factory will be closed earliest in the end of this year. With the relocation, Valio aims to improve production efficiency and profitability as well as to enhance flexibility and agility in operations.
At the Kauhava factory, the Härkis® and Beanit® fava bean products are produced, and 11 people are employed there. The closing of the factory will affect all employees. The production lines of Kauhava factory will be transferred to the Joensuu facility no earlier than at the end of the year.
“With the planned relocation of production, we are continuing to pursue production efficiency and profitability improvements as well as flexibility in our operations in line with our strategy. In Joensuu, we can leverage our long-standing expertise in producing innovative plant-based products. Production of plant-based items will also transfer to Joensuu from the Vantaa factory, which will be relocated over the next few years. This allows us to make use of existing knowledge and equipment, and to achieve long-term synergies — including with the production currently overseen at the Kauhava plant,” says Juha Penttilä, Valio’s Executive Vice President, Operations, in charge of production facilities and logistics.
The employees at the Kauhava factory have done a good job under both Raisio’s and Valio’s ownership.
“From the perspective of the employees working at the factory and their families, it is always extremely unfortunate to close a plant and reduce personnel. We want to handle the negotiations well from the personnel’s point of view. We aim to offer as many people as possible jobs at other sites,” Juha Penttilä adds.
The Joensuu factory produces about a third of all Valio cheeses. The plant annually produces about 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. About 200 people work in Joensuu. By the end of the year, the factory will start manufacturing cheese slices from the Vantaa factory, and later grated cheese, MiFU® and Oddlygood® Veggie products.
Over the past decade, tens of millions of euros have been invested in the Joensuu plant, which continues to bring vitality to the North Karelia region. Valio’s annual economic impact in the area is approximately EUR 117 million. This figure includes payments to Valio’s milk producers, employee salaries, taxes, and the factory’s local purchases of water, energy, and services.
“With the planned relocation of production, we are continuing to pursue production efficiency and profitability improvements in line with our strategy,” says Juha Penttilä.
“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 in a good manner from the personnel’s point of view,” Juha Penttilä adds.
“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.
Valio employs around 4,200 people, 3,600 of them work in Finland. Valio is owned by some 3,200 Finnish dairy farms through cooperatives.
