Norwegian food company Orkla has announced that it plans to consolidate biscuit production in the group, and to build a new biscuit production factory outside Riga, Latvia.
This is part of the Oslo-based group's strategy of consolidating production in fewer and more efficient plants.
Stronger Production Platform
“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,” said Ann-Beth Freuchen, Orkla executive vice president and CEO of Orkla Confectionery & Snacks.
“The new production plant will allow us to focus investments on new technology, increase cost-effectiveness and create a stronger production platform.”
Orkla’s current biscuit production operations in Kungälv and Riga will be closed down and relocated to the new factory, which the company hopes to have completed by 2022.
Approximately 350 people are employed at the plant in Kungälv, and after production is relocated in 2022, a product development centre will remain in Kungälv.
The Norwegian food group recently announced that it is set to acquire Danish cereal maker Struer Brød, as it looks to strengthen its production capacity in the breakfast category, which is experiencing 'good growth', and expand into new markets.
© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Aidan O'Sullivan. Click subscribe to sign up to ESM: European Supermarket Magazine.
