Finland-based Fazer has decided to shut its bakery in Estonia as it battles “challenging” conditions in the Baltic bread market.
Fazer said it planned to shut the plant in Tallinn, the Estonian capital, next April. The move will “affect at most 95 employees in production”, it added.
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The group has 18 bakeries across Finland, Sweden, Russia and the Baltic states. It plans to transfer the production at its Tallinn site to plants in Latvia and Lithuania. The site in Ogre in Latvia will receive over EUR5m (US$6.6m) of investment. Fazer said the changes will “strengthen the company’s competitiveness in the Baltic market”.
“The market situation in the Baltic countries is very challenging. There is over-capacity in the Baltic bread market and the consumption of pre-packed bread is declining. Consolidating the production we will increase our efficiency,” Petri Kujala, MD of Fazer’s bakery business, said.
Last month, Fazer said it was restructuring its domestic business, moves that will affect its local bakery arm. Some 61 jobs are at risk.
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