Valio announces major restructuring

FINLAND – Dairy co-operative Valio announced on Friday a 50 million euro six-year restructuring plan.

The strategy centres on the company’s plant at Riihimaki, southern Finland, which will double its processing capacity by 2008. The factory already processes milk, cream and sour milk but will also produce yogurt, pudding and curd products under the plan.

Valio’s production of children’s food and ice cream will be transferred to its plant at Turenki in the south of the country.

Riihimaki will also become one of the company’s five major distribution centres. The other centres will be Helsinki and Tuusula in southern Finland, Jyvaskyla in central Finland and Oulu in Western Finland.

Under the plan, Valio will also close a number of its processing plants. Production at Sotkamo in central Finland and Turku in southwest Finland will close in 2003. Factories in Rovaniemi in the north of the country and Kouvola in the southeast will then close in 2004. The company’s plant at Tampere in the southwest will cease production in 2008.

Valio claims that the strategy will save it 16.8 million euro per year.