Orkla consolidates biscuits production to build new factory in Europe

NORWAY – Orkla, a Norwegian conglomerate operating in the Nordic region, has consolidated production of biscuits in the Group, to build a new biscuits factory outside Latvia, Europe.

According to the company, investing in a new, modern factory and concentrating production in one location, can strengthen the future competitiveness and innovative ability and at the same time reduce our climate footprint.

This also is part of the Group’s strategy of consolidating production in fewer and more efficient plants.

“The new production plant will allow the company to focus investments on new technology, increase cost effectiveness and create a stronger production platform,” said 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

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