Finnish food group Fazer has confirmed plans to build a new chocolate factory in the city of Lahti, marking the largest single investment in the company's history.
The 400 million-euro project, originally announced in 2022, received final approval this week, with construction set to begin this summer. The facility is expected to be completed by 2028.
The new factory will be located along Finland's Highway 4 on a site prepared by the city of Lahti.
The arrival of the chocolate plant is expected to bring a significant economic boost to the region. The city estimates it will gain approximately two million euros in additional annual tax revenue once operations begin. The project is also forecast to create hundreds of jobs during its construction phase, amounting to over 500,000 working hours.
"We are ready," Lahti Mayor Niko Kyynäräinen (SDP) said at a press conference on Monday. According to Kyynäräinen, the construction agreement between Fazer and the city was signed last Friday.
New facility electrified, automated
The new facility will be heavily electrified and highly automated, with a strong emphasis on energy recycling. According to Fazer, the goal is for the factory to cover all of its carbon dioxide emissions related to its own energy consumption. The company is seeking BREEAM environmental certification for the site.
Joséphine Mickwitz, Fazer's Director of Communications and Sustainability, confirmed that a 20 million-euro investment grant from Business Finland, reported by Yle last week, is tied to the Lahti project.
Fazer Group CEO Christoph Vitzthum described the investment as key to maintaining the company's position as the leading confectionery producer in the Nordics.
"We are pleased to move forward with this investment," Vitzthum said.
He added that the planning phase took a lot of time. The project was also slowed by a government plan to increase VAT on sweets, which was eventually shelved. This, he said, would have hit Finnish companies particularly hard.
"Another complication was, of course, the controversial VAT proposal, which was fortunately dropped. It would certainly have jeopardised the construction of the factory," Vitzthum said.
Unsurprisingly, Fazer considered the proposed tax increase to be discriminatory and it was branded in the Finnish press as the 'Fazer tax'.
Earlier this year, Fazer also held restructuring talks with employees at its current chocolate factory in Vantaa, as production will gradually shift to Lahti once the new facility is operational. Arrangements were made without the need for job cuts or layoffs.
Once the Lahti factory opens, it will take over the company's production of milk-based chocolates. The Vantaa facility will continue to produce dark chocolates made with milk powder as well as various specialty items.
