Food giant Paulig's Estonia expansion depends on deal with Swedish unions
International food producer Paulig plans to expand in Estonia, though this hinges on reaching an agreement with Swedish trade unions.
Relocating production to Estonia, where Paulig already operates a production plant in Saue, near Tallinn, would mean closing a factory in Mölndal, Sweden, which Paulig currently leases.
To close down the Mölndal plant, near Gothenburg, Paulig will need to reach an agreement with the relevant Swedish trade union.
"This is a standard process that we are currently dealing with, and we will announce if we have anything to report in this regard. That is all I can say at the moment," Paulig's chief financial officer Juha Väre said.
Paulig hopes to consolidate all production of its Santa Maria brand of spices, by expanding the current Saue factory, which currently employs around 85 people. The expansion would create more jobs.
"If those negotiations with the Swedish trade unions under Swedish law lead to a decision that the spices are brought here, then it will certainly be a very big challenge for the Saue factory to handle that entire volume here," noted Margus Üürike, head of the Saue factory.
"We would be able to consolidate our production globally in one location that we own and operate flexibly here," Väre added.
"We are talking about dry spices, which we have been producing here for more than 30 years. What exactly that means, I cannot say 100 percent, as the volume brought here will also depend on the outcome of the negotiations. But we are talking about the number of employees – I would not dare say it would double, but it would certainly increase significantly – and new jobs would be added," Üürike went on.
If the process does move forward, the relocation should begin as early as this summer with a view to completing that work next year.
"The transfer would be gradual, step by step; in the event of a positive decision, the first equipment could arrive as early as this summer, and the entire relocation would be completed in 2027," Üürike explained.
The Saue factory produces spice blends and Tex-Mex-style salsa under the Santa Maria brand. The brand accounts for around 15 percent of Paulig's total output.
Paulig produces coffee, snacks and other comestibles and employs around 2,800 people worldwide. It is a family-run business headquartered in Helsinki.
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Editor: Andrew Whyte, Mari Peegel
Source: 'Aktuaalne kaamera'
