Valio to relocate its Oulu production site to Riihimäki, Jyväskylä & Joensuu

FINLAND – Valio has announced plans to relocate production from its Oulu factory to facilities in Riihimäki, Jyväskylä and Joensuu as part of a broader effort to improve operational efficiency and competitiveness.

If implemented, the proposal would result in the closure of production operations at the Oulu site. However, the distribution warehouse and several support functions, including sales operations, would remain at the premises.

The company said the move is being driven by rising operating costs and declining production volumes at the Oulu facility.

By concentrating manufacturing activities at other sites, Valio aims to strengthen production efficiency, profitability and long-term competitiveness in line with its corporate strategy.

Change negotiations concerning the proposed production transfer are scheduled to begin on 25 May 2026 and will involve 264 employees at the Oulu factory.

According to current plans, up to 140 positions could be affected. The negotiations, based on production-related, economic and operational reorganisation grounds, are expected to last three weeks.

Juha Penttilä, Executive Vice President, Operations at Valio, said: “With the planned transfer of Oulu factory’s production, we aim to improve Valio’s production efficiency, profitability and competitiveness. With profitable and competitive business, we ensure the vitality of our owners, i.e. Finnish dairy farms, also in the future, and secure the continuity of domestic food production.”

Under the current proposal, production activities at the Oulu factory would be phased out by the end of the first half of 2028. Valio emphasised that no final decisions have yet been made.

Penttilä added that the company intends to manage the process responsibly and support affected employees where possible, including offering open positions at other Valio locations if the restructuring moves forward.

The Oulu factory currently employs around 300 people and manufactures a range of products including fresh dairy items, fermented milk products, plant-based semi-finished products and ice cream.

Recently, the company acquired Raisio’s plant protein business, including the Härkis and Beanit fava bean brands, in a deal valued at €7 million.

The acquisition includes production equipment at Raisio’s plant protein factory in Kauhava, Finland, and 16 employees who will transfer to Valio.

A report by Valio stated that the deal strengthens its position in the plant-based protein market as part of its ongoing expansion beyond dairy. 

Subscribe to receive our email newsletters with the latest news and insights from Africa, the Middle East and around the world. SUBSCRIBE HERE