Valio to Invest US$64.8M in Lapinlahti Cheese Manufacturing Plant

FINLAND – Valio, a prominent Finnish food company, has unveiled plans to inject US$64.8 million (€60 million) into its Lapinlahti cheese manufacturing plant.

The investment aims to ensure the continuity of cheese production, enhancing the availability of popular cheese varieties such as Valio Keisarinna and Valio Hyvä suomalainen Arki on store shelves in the coming years.

It involves upgrading and expanding the existing facilities by approximately 2,000 square meters to accommodate new cheese-making equipment, replacing outdated machinery and streamlining production processes.

Additionally, the investment will facilitate the renewal of packaging operations and equipment, enhancing operational efficiency and product quality.

Aleksi Ylitalo, director of the Lapinlahti plant, emphasized that the modernization efforts will boost the plant’s cheese-making capacity and contribute to waste reduction, aligning with Valio’s commitment to sustainability and environmental responsibility.

Meanwhile, the plant receives approximately 415 million liters of raw milk annually, highlighting its critical role in the dairy value chain.

In addition to cheese production, the Lapinlahti facility manufactures a variety of dairy products, including milk powder, demineralized whey powder, and value-added powders such as lactose-free milk powders and baby food.

The plant’s products are sold in both domestic and international markets, with exports reaching regions such as Central Europe and the United States.

Over the years, Valio has consistently invested in the modernization and expansion of its production facilities, enhancing operational efficiency and product quality.

Recent investments in the Lapinlahti plant include completing a consumer product packaging facility in 2020 and a significant energy renovation in 2022.

The energy renovation enabled the recovery of heat from the plant’s flue gases, reducing energy consumption by more than 10% and greenhouse gas emissions by about 10,000 tonnes of CO2e per year.

The latest investment in the Lapinlahti plant comes as Valio is streamlining its operations. The company plans to close the Pitäjänmäki and Turku factories by the first half of 2026.

One of these, located in the southwestern coastal city of Turku, processes the company’s plant-based cooking and snacks range under the Oddlygood brand.

The other, in the Pitäjänmäki district near Helsinki, makes juices, berry soups, and glogg (a type of mulled wine). Operations at the affected sites will be transferred to Valio’s plant in Riihimäki, in the south of the country.

Valio explained the rationale behind the move, citing “production and economic reasons” and adding that shutting the two sites would “improve production efficiency and profitability.”

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