Fazer Closes Karkkila Factory; Operations Relocate

Fazer Group has recently announced it has decided to close the production facility in Karkkila and to move its operations to Fazer’s factory in Lappeenranta. Karkkila lacks the same development possibilities as Fazer’s factory in Lappeenranta, therefore transferring the production to Lappeenranta will enable the needed efficiency and capability building to remain competitive in the long run, the company said in a statement.

“To better respond to the evolving consumer demand, Fazer needs to develop the production of the xylitol products to enable efficient development and production of more consumer-driven products, more compelling and innovative tastes and shapes and different sizes and formats of packaging. By focusing the production to bigger units, Fazer can manufacture high-quality products more efficiently, which is a prerequisite for the company to maintain its competitiveness,” read the statement.

Collaboration negotiations affecting all employees in the Karkkila factory have been concluded. The negotiations led to the termination of 15 job roles.

At the same time, Fazer also announced its intention to temporarily lay off some of the employees at the Lappeenranta factory due to cited changes in the consumer behavior caused by the current pandemic.

Based on a separate evaluation, up to a maximum of 90 days per employee will be used during the current year.

To minimize the impact of the potential lay-offs on the employees, Fazer may offer the employees the possibility to use paid leaves, to work in another department or periodizing the terms of the temporary lay-offs.

The actual closure of the Karkkila factory will take place in winter 2021.