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Orkla to build new biscuits factory near Riga, Latvia

FBR Staff Writer Published 12 June 2018

Norwegian conglomerate Orkla has revealed its plans to build a new biscuits factory outside Riga, Latvia, in a move to consolidate its biscuit operations.

The company said that the new biscuits plant is part of its strategy of having lesser and more efficient plants. As part of its plan, Orkla has decided to close its current biscuits production operations in Kungälv and Riga in Latvia and relocate them to the new factory.

The food company said that the change will be executed by the end of 2022.

It disclosed that it had considered a number of different alternatives for the future production of biscuits before arriving at the final decision of having a new factory outside of Riga.

The company said that, in accordance with Swedish labor law, negotiations have been going on from January 2017 between the employee representatives at the Kungälv factory and the management of Orkla Confectionery & Snacks Sverige. The Kungälv biscuits factory employs about 350 people.

Orkla plans to maintain a product development center in Kungälv when production moves to the new plant in 2022.

Orkla Confectionery & Snacks executive vice president and CEO Ann-Beth Freuchen said: “By investing in a new, modern factory and concentrating production in one location, we can strengthen our future competitiveness and innovative ability and at the same time reduce our climate footprint.

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

According to Orkla, biscuits are a key category for its business and that it has strong positions in the Nordic and Baltic markets apart from export sales.

In other food categories, Orkla announced the launch of new products last month that include - vegetarian foods from Anamma and Naturli, Naturli’ plant-based ice cream and new pizza varieties under the Grandiosa brand among others.

Headquartered in Oslo, Orkla’s branded consumer goods business is made up of Orkla Foods, Orkla Confectionery & Snacks, Orkla Care and Orkla Food Ingredients.


Image: Orkla to set up new biscuit factory in Latvia. Photo: courtesy of artur84/FreeDigitalPhotos.net.