Valio plans to relocate Vantaa plant operations to Joensuu

FINLAND- Valio has announced plans to relocate its Vantaa plant operations to Joensuu and its Pitäjänmäki warehouse operations to either Riihimäki or Tuusula, aiming to improve production efficiency and profitability. 

The move, if implemented, would result in the closure of the Vantaa plant and the Pitäjänmäki warehouse, affecting a significant number of employees at both facilities. 

Change negotiations have begun with the affected employees, with 228 workers at the Vantaa plant and 113 at the Pitäjänmäki warehouse now under review.

Valio’s Executive Vice President for Operations, Juha Penttilä, explained the rationale behind the decision, stating, “The Vantaa plant produces processed cheeses, which are largely sourced from our Joensuu plant.”

“Moving operations to Joensuu would reduce transportation needs and streamline production, increasing overall productivity.” 

He added that Valio’s Pitäjänmäki warehouse is also slated for relocation due to zoning changes in Helsinki.

 “In the city of Helsinki’s master plan, the Pitäjänmäki area is designated as an urban residential area, where there will be no possibility to continue industrial activity in the future.”

Valio’s Vantaa plant, known for producing processed, shredded, and sliced cheeses, including MiFU and Oddlygood Veggie products, plays a significant role in both the domestic and export markets. 

The Pitäjänmäki warehouse currently handles the logistics for Valio’s butter, cheese, and spreads, among other dairy products. 

However, with the relocation plans in place, the company is looking to streamline its operations by moving these logistics services to new, more strategically located facilities.

The change negotiations are expected to last six weeks, with potential personnel reductions targeting up to 228 employees at the Vantaa plant and 113 at the Pitäjänmäki warehouse. 

Valio aims to offer employment at other sites to as many impacted employees as possible. 

“The personnel at all our locations have done a good job,” Penttilä emphasized.

“Change negotiations involving personnel reductions are always very unfortunate, and we want to handle it in the best way possible from a people perspective.” 

If the plans proceed, the relocation of the Vantaa plant would take place gradually between 2025 and 2027, with the earliest possible closure date for the Pitäjänmäki warehouse in late 2027. 

The company also indicated that new work responsibilities and changes in shift patterns would be introduced at the Joensuu plant as it takes on more production duties.

Penttilä highlighted the strategic importance of the Joensuu plant, located in a key milk-producing region. 

“Most of Finland’s dairy farms are located in the area extending from Ostrobothnia to Eastern Finland. The Joensuu plant receives milk from 800 dairy farms, most of them located in North Karelia, and produces one-third of all Valio’s cheeses,” he said.

Currently, over 40% of the cheeses processed at the Vantaa plant originate from Joensuu, further reinforcing the efficiency gains Valio anticipates by consolidating operations at a single site.

The Joensuu plant produces around 25 million kilos of cheese annually, including popular brands such as Valio Polar®, Valio Salaneuvos®, and Valio Viola® fresh cheeses, in addition to milk powders. 

With the planned relocations, the plant is expected to see an increase in its production capacity, potentially providing new job opportunities for the local community.

Valio’s relocation plans are driven by a combination of operational, financial, and logistical considerations. By consolidating its operations in Joensuu, 

Valio hopes to enhance productivity and reduce transportation costs. The company, owned by around 3,300 Finnish dairy farms through cooperatives, remains committed to maintaining its competitive edge in the dairy industry. 

“Through competitive business operations, we ensure the vitality of our owners, i.e., the dairy farms, and we secure the continuity of Finnish food production. That enables us in the long run to also create jobs and livelihoods around Finland,” Penttilä stated.

While the change negotiations have yet to produce final decisions, Valio’s strategic shift underscores its focus on long-term sustainability and efficiency. 

The company’s plans to relocate operations reflect broader trends in the dairy industry, where increasing competition and zoning changes are pushing producers to seek more efficient production models. 

Penttilä reiterated that no decisions have been made at this stage, and the negotiations are intended to explore all options available for the company and its employees.

Valio, which employs 4,300 people overall, of whom 3,700 are in Finland, continues to be a cornerstone of Finnish dairy production. 

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