FINLAND – Valio, a Finnish dairy company, is set to invest US$77.2M to modernize its Seinäjoki production plant, enhancing its efficiency and capacity.
The investment, scheduled to be rolled out between 2023 and 2026, will involve a range of upgrades designed to strengthen the plant’s role in Valio’s operations and secure its future.
The Seinäjoki plant, which is one of Valio’s largest in terms of milk processing volume, produces a range of products including Valio butters, Oivariini® spreads, quarks, cottage cheeses, and specialty milk powders.
The plant is particularly important for Valio’s export strategy, as it ships out more than 80% of its specialty milk powders to international markets for various applications, such as confectionery and bakery products.
According to the company, one of the main focuses of the investment is the modernization of the powder plant’s drying tower, which will begin in autumn 2024.
The upgrade is expected to increase the plant’s production capacity and improve the energy efficiency of the process.
The multipurpose tower will enable the plant to produce both conventional and specialty milk powders more effectively. The project is slated for completion by the end of 2026, ensuring the plant remains competitive and capable of meeting growing market demands.
Another aspect of the investment is the construction of a new washing center for the powder plant. The facility, expected to be operational by the end of 2025, will handle the cleaning processes necessary for powder production.
It will also recycle washing water, which will reduce the plant’s use of chemicals and water, and cut down on wastewater. The new washing center is designed to recover nearly 90% of the chemicals used, highlighting Valio’s commitment to sustainability and efficient resource management.
In addition to these upgrades, Valio is also building a new regional laboratory at the Seinäjoki site. The current laboratory facilities are outdated and no longer meet the company’s needs.
The new laboratory, scheduled to open by the end of 2024, will be crucial for maintaining high standards of product quality.
It will analyze milk from Valio’s farms and perform necessary tests for production. With the capacity to process 1.7 million samples annually, the laboratory will support both domestic and international quality control.
The Seinäjoki plant processes about 25% of the milk from Valio’s dairy farms and produces approximately 130 million kilos of fresh products, powders, and fats each year.
About 60% of its output is exported. The investment will not only enhance the plant’s capabilities but also support Valio’s profitability and boost employment in the Seinäjoki region.
This modernization effort comes as Valio recently announced a US$66.1 million investment in cheese production at another domestic plant, Lapinlahti factory.
The deal sought to expand the Lapinlahti factory by 2,000 square metres to encompass new cheesemaking equipment, a new packaging operation and a new power sub-station and back-up power.
The company said the investment is intended to replace the current manufacturing apparatus, which has reached the end of its technical service life.
Earlier this year the company also announced the closure of two food and drinks manufacturing facilities in Finland.
One of these, located in the south-western coastal city of Turku, processes the company’s plant-based cooking and snacks range under the Oddlygood brand.
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