Bold €400 million investment from Fazer sees work begin on Finnish chocolate factory
An artist's impression of the new Fazer site in Finland. Pic: Fazer
Scandinavian confectionery group Fazer has unveiled its largest-ever investment in a €400 million new chocolate factor in Lahti, Finland, as it seeks to expand its production capabilities, writes Neill Barston.
According to the business, works will begin this summer, with the facility said to be around 33,000 square metres in total, featuring advanced automated manufacturing lines.
It is set to be completed in 2028, and will combine its long-standing chocolate expertise with new production capabilities. Chocolate production will also partially continue in Vantaa.
Significantly, BREEAM environmental classification will be applied for the factory (Building Research Establishment Environmental Assessment Method), as it seeks to set a new bar for sustainable performance.
Owing to electrification and comprehensive energy recycling, the factory will be CO2 emissions-free, and the efficient use of raw materials enabled by the new technology will also significantly reduce production waste. The factory, which will be located in the Pippo industrial area.
Christoph Vitzthum, President and CEO of Fazer Group, asserted that the company’s major investment would lend the business a competitive edge within its core European markets.
He said: ”The investment of approximately EUR 400 million is the largest in Fazer’s history and it is also significant from a Finnish food industry perspective. The new factory will support both our domestic as well as international growth and demonstrates our strong belief in the competitiveness of Finnish food production also in the international markets.,” says The new factory will strengthen Fazer’s position as the leading confectionery manufacturer in the Nordic countries. It will enable Fazer’s international growth and also contribute to a significant increase in Finnish food exports. Fazer already today accounts for 15% of Finnish food exports.
As a result of the investment decision, Fazer has made a real estate transaction with the City of Lahti and the construction of the factory begins. The construction phase will employ hundreds of professionals in various fields for an estimated total of over 500,000 working hours.
The investment will be carried out during 2025–2028 and financed with long-term debt financing.
As part of the financing structure, Fazer has established a green finance framework. Within this framework, the company can issue a variety of green financial instruments, including green loans, leasing agreements and bonds. The construction of the chocolate factory has been supported by Business Finland’s clean transition industrial investment support programme.
