Taffel crisps maker Orkla launches review of Finnish production facilities
The business has launched an evaluation of the snacks and frozen product operations of its Orkla Confectionery & Snacks Finland division as it looks to “strengthen long-term competitiveness.”
Orkla Confectionery & Snacks Finland produces Taffel snacks and Anyday nuts, Panda confectionery, Kantolan and Ballerina biscuits and Oolannin frozen food products. The business employs around 400 staff and has a turnover of about €100m ($111.9m).
In its most recent financial results, for the third quarter of 2015, Orkla reported 1.2% organic growth in its overall confectionery and snacks operation. This was primarily generated by the operations in Denmark, Norway, Sweden and Estonia, however, with sales declining in Finland “due in particular to a difficult market situation in the snacks category.”
Six-week evaluation process
Staff and employee representatives were this week informed the six-week evaluation process – to start later this month – would include all personnel at its Haraldsby production site on the island of Åland, as well as sales and marketing personnel in Vantaa.
“At present, Orkla has several factories with comparable technology and production in the Nordics and Baltics,” said Orkla Confectionery & Snacks Finland CEO Pasi Flinkman. “We currently have too much capital tied up in maintenance and the operation of these production facilities.
Directing resources towards growth and innovation
“Going forward, we need to direct even more of our resources towards growth and innovations. To ensure our future competitiveness, we need to evaluate the factory network, and we are now starting the evaluation of the Orkla factory in Haraldsby," he added.
A recommendation will be submitted to the board of directors of Orkla Confectionery & Snacks Finland following the review.
Orkla Confectionery & Snacks Finland is part of Norwegian business Orkla, which supplies branded consumer goods to the retail, out-of-home and bakery sectors in the Nordics and the Baltics. With 13,000 employees, it is listed on the Oslo Stock Exchange and had a group turnover of NOK 30bn ($3.5bn) in 2014.