Swedish agri-food group Lantmännen is investing about Skr700m ($73m) in a new production facility in Örebro to bolster its bread business.
The company said the investment, through its Unibake bakery business unit, represents a “strategic leap forward” in expanding the business and increasing production capacity.
Lantmännen Unibake has been operating a bakery in Örebro since 1963. It produces speciality bakery items such hotdog and burger buns with a daily capacity exceeding two million pieces, according to a statement from the Swedish company.
The new facility, spanning 13,000 square metres across three floors, will be built within the existing factory area.
It will be constructed with sustainability features such as solar panels and smart technology upgrades, the company said.
Just Food has asked the company to provide more details on the anticipated production increase and whether any jobs will be created from the project.
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By GlobalDataLantmännen Unibake Sweden managing director Jonas Lindell said: “This new facility allows us to meet growing customer demand while strengthening our position in the region.
“It reflects our strong commitment to Swedish food production and represents a long-term investment reliability, product quality and innovation.”
Lantmännen said the works at the new bakery will commence in the autumn with operations anticipated to begin in 2027.
Lindell added: “With the expansion, we are increasing capacity and thus Swedish food production. The building incorporates a range of measures that support our climate ambitions – including solar panels and technology upgrades.
“These enhancements reflect our continued focus on responsible growth and incremental improvements in environmental performance.”
Headquartered in Copenhagen, Denmark, Lantmännen Unibake operates over 30 bakeries across Europe, Australia and the US.
It serves customers in international foodservice, including quick-service restaurants, and retail with sales in more than 60 countries.
With a turnover of €1.2bn ($1.3bn), the business has approximately 6,000 employees.
Its brand portfolio includes Schulstad, Bonjour, Myllyn Paras, Korvbrödsbagarn, Vaasan, Pastridor, Hatting, and Schulstad Bakery Solutions.
The latest development comes after the company invested Skr1.2bn to build a new factory for plant-based proteins in September.
The facility, based in Lidköping, will mainly produce plant-based proteins from peas but will also use fava beans as raw materials.
Earlier this month, Lantmännen acquired around 10% of Sproud, a local, plant-based, milk-alternatives business.
Founded in 2018, Sproud produces a variety of plant-based milks using split yellow peas as the primary ingredient.
In February, Lantmännen’s meat and charcuterie business Scan Sverige announced the acquisition of Swedish peer Lindvalls Chark to “broaden its business portfolio”.
