Valio to invest €30m in Finland cheese plant

Finland-based dairy giant Valio is to invest around €30m ($33.8m) in a new cheese maturation warehouse at its production facility in the eastern town of Joensuu.

The construction of the new warehouse, which will be located next to the existing facility, is set to begin immediately and is expected to be completed by the end of 2027.

In a statement, Valio said the latest investment is part of its strategy to “gradually” shift production from its facility in Vantaa in southern Finland to Joensuu between 2025 and 2027.

Slicing, grating and processed cheese production will be relocated from Vantaa to Joensuu. The move was initially announced in October, when Valio also said it was preparing to move its warehouse operations in the Helsinki district of Pitäjänmäki to sites in either Riihimäki or Tuusula.

The investment will see the consolidation of the entire cheese production process “under one roof” at the Joensuu plant, the company said.

Furthermore, the project will also renovate the maturation warehouse to house production lines moving from the Vantaa plant.

Joensuu plant director Petri Liukka said: “The expansion will create a total of about 100 new jobs at the Joensuu production plant within a couple of years. New positions will be created as the new production lines and facilities are gradually taken into use.

“At this stage, we have already recruited 15 new employees, and a few dozen more positions will become available on the slicing lines later this year. Valio employees from the Vantaa plant have also transferred to positions in Joensuu.”

The Joensuu plant produces “one third” of the cheese output of the Finnish dairy giant.

It processes milk from 800 dairy farms and produces approximately 25 million kilos of cheese blocks, consumer-packaged cheeses, cream cheeses, and milk powders annually.

Products made at the plant include Valio Polar, Valio Salaneuvos and Viola cream cheeses.

The Joensuu plant will also, in the future, produce processed cheeses, such as Valio Koskenlaskija, Valio Aamupala, Valio Olympia, as well as Valio Kippari slices and grated cheese.

About 20% of the products from the site are sold outside Finland, Valio said.

The project is the latest investment in Valio has made at its plants in Finland.