Finnish dairy group Valio is to invest around €70m ($77.1m) in upgrading the Seinäjoki milk processing plant in its domestic market.
Valio said in a statement today (12 September) that it plans to “modernise and overhaul” the plant and that the investment will increase the facility’s capacity and improve operational and energy efficiency.
The work is scheduled to take place between now and 2026.
Plans include the construction of a new washing centre for the powder plant, modernisation of the plant’s drying tower and building a new regional laboratory facility.
Among the products produced at Seinäjoki are all Valio butters, Valio Oivariini spreads, cottage cheese, Valio Profeel quarks and puddings, and speciality milk powders for industrial customers.
Seinäjoki plant director Jari Sivunen said: “The significant investments in the plant and the regional laboratory operations will secure Seinäjoki’s diverse production of fresh products, fats and industrial powders well into the future and strengthen Valio’s profitability and employment capabilities in the Seinäjoki region.”
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By GlobalData
Valio, owned by 3,400 Finnish dairy farmers through cooperatives, said the overhaul of the drying process at the powder plant, which will begin this year, will provide additional production capacity for the speciality milk powders produced in Seinäjoki, which are a key element of its strategy.
The Seinäjoki plant produces speciality milk powders mainly for international industrial customers who use them to make confections, bakery products and baby food, among other things. More than 80% of the milk powders are exported.
Speciality milk powders can be used to make products that are, among other things, lactose-free, high in protein and low in sugar.
The new regional laboratory planned for the Seinäjoki plant is where the composition and quality of the milk from every Valio farm will be analysed. The laboratory will carry out all the analysis required for the Seinäjoki plant’s production.
In 2023, the Seinäjoki plant received about 25% of milk produced by Valio’s dairy farms. There are a total of three production plants at the Seinäjoki site for powders, fat and fresh products.
In May, Valio announced plans to invest €60m in cheese production at another domestic plant.
The Lapinlahti factory is being expanded by 2,000 square metres to encompass new cheesemaking equipment, a new packaging operation and a new power sub-station and back-up power.
The previous month Valio said it planned to close two food and drinks manufacturing facilities in Finland.
Valio’s sales in 2023 were €2.3bn. It employs 4,200 people.
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