Valio boosting innovation, eyeing exports

The facility is the largest single investment made in Valio’s history. It is located in Valio Riihimäki, in southern Finland and will have an annual production capacity of around 120 million kilos.

Innovation gets a boost

“Innovativeness, a wonderful taste, and responsible manufacturing practices. These are the things that people expect from their snacks, and our new snack plant meets these needs,”​ said Valio CEO Annikka Hurme.

By leveraging the “very latest”​ equipment and technology Valio said it is able to get the “best possible benefit”​ from its R&D capabilities.

In the first phase, the plant will manufacture products that are already familiar to Finnish consumers, such as the Valiojogurtti yogurt series. Once the plant becomes fully operational, consumers will see “a whole new kind of innovative snack products”​, the company suggested.

Valio is focusing its product development efforts on cutting sugar and varying the protein and fat content of products.

Spotlight on sustainability

Hurme said that the production plant demonstrates “how seriously”​ Valio takes its environmental responsibilities. “Many loss-reducing and natural resource-saving choices were made in its planning and construction.”​

The new plant uses about 30% less energy per unit of production than Valio’s old factory in Riihimäki. This is achieved by using waste heat generated by production and utilising a “free cooling method”​ that uses cold weather in low temperatures. More than three-quarters of the thermal energy used at Valio Riihimäki comes from renewable fuel.

Valio also tackles food waste and product loss through “rigorous”​ hygiene standards.

Processes within the factory are also more efficient, project manager Jukka Partti suggested. “The material flows in the plant are efficient, because manufacturing of the products is straightforward. There are no unnecessary intermediate steps. For this reason, the raw materials used in production, the packaging materials, and the finished products themselves also flow seamlessly from one stage to another without excessive handling.”​

Eyeing export growth

The investment is a significant plank in Valio’s growth strategy, said chairman Vesa Kaunisto.

“We at Valio believe in the future of responsible dairy production and profitable milk processing. The continued profitability of dairy farming is best ensured when the company they own, Valio, succeeds in a competitive field and, therefore, remains able to pay a good price to its shareholders through cooperatives.”​

Kaunisto said that the plant made Valio “even more competitive”​ in Finland and overseas.

When the facility is operational, almost half of its production will be destined for export markets. The company, whose export business took a severe hit when Russia imposed an embargo on food products from the EU, is working to rebuild its overseas sales.

Kaunisto said that Sweden and Denmark are Valio’s largest export markets “for the time being”​.

“However, in the future, we expect to expand to other countries,”​ the chairman concluded.