Fazer Group has announced a substantial investment of approximately €400 Million for the construction of a new chocolate factory in Lahti, Finland, underscoring the company's efforts to modernise its production capabilities.
The factory is expected to become operational by 2028 and will integrate advanced technology aimed at reducing environmental impact while enhancing product innovation.
The decision to build the new facility reflects Fazer's commitment to maintaining its position as a leading confectionery manufacturer in the Nordic region. The factory will incorporate automated production lines and new technologies designed to produce innovative chocolate products, leveraging Fazer's extensive expertise in the sector.
The chocolate industry is set to expand at a rate of 4.7% CAGR during the period 2025-2032, according to Coherent Market Insights. USD 130.64 Bn in 2025 will rise to around USD 180.29 Bn in 2032. Launch of new flavors and innovative packaging solutions are driving the market size.
Fazer's new factory will be located in the Pippo industrial area and is designed to operate with CO2 emissions-free energy consumption, thanks to electrification and comprehensive energy recycling systems. This initiative aligns with the growing emphasis on sustainability within the food and beverage industry, as companies increasingly seek to minimise their carbon footprints.
Christoph Vitzthum, president and CEO of Fazer Group, highlighted the significance of this investment not only for the company but also for the Finnish food industry as a whole. "This investment is the largest in Fazer's history and reinforces our belief in the competitiveness of Finnish food production in international markets," he commented.
The construction phase is projected to create over 500,000 working hours, employing hundreds of professionals across various fields. This investment is expected to bolster both domestic and international growth for Fazer, which currently accounts for 15% of Finnish food exports.
The financing for the factory will be structured through long-term debt, complemented by a newly established green finance framework. This framework will enable Fazer to issue green financial instruments, including loans, leasing agreements and bonds, further highlighting the company's commitment to sustainable practices. Additionally, the project has received support from Business Finland's clean transition industrial investment programme.
Fazer began planning the new factory in early 2022, with various stages of development leading to the current investment decision. The company has a long history in Finland, employing over 4,000 people across multiple production facilities, including sites in Vantaa and Lappeenranta.
Source:
Ecommerce PLatform: FOODBEV MEDIA Ltd.
Company: 2nd Nature
