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Paulig, the Finnish food and beverage company, has announced plans to end production at its spices factory in Molndal, Sweden and consolidate operations into its existing facility in Saue, Estonia.
The decision, reportedly driven by rising input costs and a need to improve competitiveness, will affect 105 employees in total, comprising all 86 workers at the Molndal plant and additional roles at the local office. The Molndal facility, which Paulig rents, currently produces spices for the Santa Maria brand. The company intends to complete the transition by summer 2027, making the Saue unit its sole spices production hub.
Lenita Ingelin, SVP of the branded business area at Paulig, commented: “This change aims to strengthen Paulig’s long-term competitiveness. Rising production costs have put pressure on our profitability, and this change would enable us to handle rising costs more effectively”.
Paulig noted that the Saue factory, which it has operated since 1993, is fully owned by the company and has capacity for expansion. The move will not affect Paulig’s other Swedish operations, including its tortilla plant in Landskrona and warehouse in Kungsbacka.
Source: Just Food
