Fazer Group invests US$12.5M to expand its bakery plant

FINLAND – Fazer Group has announced an investment of €11 million (US$12.5 million) to expand its rye bread production capacity at its facility in Lahti.

This initiative aligns with Finland’s 2024 nutrition recommendations, which encourage citizens to increase their consumption of whole grains.

In its statement, Fazer indicated that it is addressing this demand by introducing a new rye bread production line at its Lahti factory.

This new line, operational since April, has the capacity to produce up to 25,000 local Reissumies rye bread varieties per hour. Known for its softness, Reissumies is considered ideal for sandwiches and toast.

Additionally, the new production line operates on green energy, which will reduce the Lahti bakery’s carbon dioxide emissions by 30%. Fazer also plans to replace one of its existing production lines with an electric line.

This investment received funding from the Ministry of Economic Affairs and Employment of Finland, specifically in the form of an energy subsidy granted by the Business Finland sub-organization to support the electrification of the rye bread line.

“We aim to expand our range of attractive and healthy rye products while increasing domestic bread production. In Finland, we bake with 100% domestic grain,” said Marko Bergholm, the managing director of Fazer Bakery Finland

Fazer’s bakery division produces a variety of baked goods, including wheat-based toast, specialty portion breads, burger buns, polar breads, bread snacks, and cakes.

“It is important for us to promote a healthy lifestyle and encourage Finns to adhere to the new nutrition recommendations by providing tasty whole grain breads, which will support meeting the 90-gram recommendation,” Bergholm added.

Founded by Karl Fazer in 1891, Fazer Group is one of the largest corporations in the Finnish food industry. Today, the company employs over 6,000 people across Finland, Sweden, Latvia, Lithuania, Estonia, Denmark, Norway, and Poland, with its products exported to more than 40 countries.

Fazer Bakery Finland employs approximately 1,600 workers, with 450 based at the Lahti site, which, following this investment, will position itself as the world’s largest rye bakery. The company also operates bakeries in Vantaa and Lappeenranta.

In 2024, Fazer recorded net sales of €1.18 billion (US$1.3B). After adjusting for currency fluctuations, net sales grew by 1%, while comparable net sales, excluding the dairy division, rose by 3%.

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