The new plant will be built in Ādaži city, next to the company’s new Laima sweets plant, and will create 200 new jobs.
Orkla announced it will close its biscuit operations in Kungälv, Sweden, and Riga, Latvia, and relocate production to the new factory by the end of 2022.
The Norway-headquartered company said the move is part of a strategy to consolidate production in fewer and more efficient plants.
“This important decision brings new investment and new manufacturing volume to Latvia. Orkla develops specialized manufacturing functions throughout the region where it operates, and this investment decision will capitalize on the existing expertise of Latvian workforce and biscuit and confectionery manufacturing tradition,” said Toms Didrihsons, chairman of the Board, Orkla Confectionery & Snacks Latvija.
“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,” added Ann-Beth Freuchen, CEO of Orkla Confectionery & Snacks.
“The new production plant will allow us to focus investments on new technology, increase cost effectiveness and create a stronger production platform.”
The Ādaži plant is expected to be operational at the end of 2020 and will produce Selga cookies, waffles and gingerbread for Scandinavia and the Baltic states, and further afield in the future.
A product development centre will remain in Kungälv.
The company’s Staburadze facility in Riga will continue producing Staburadze cakes, Laima zephyrs and Pedro convenience products.
Orkla Confectionery & Snacks Latvija is a leading producer of snacks, chocolate and confectionery in the Baltic region. Its portfolio includes the Laima, Selga, Staburadze, AdazuCipsi and Taffel brands.