Nordic confectionery company Cloetta Fazer has said it is planning to close its factory in Norrköping, Sweden as part of plans to restructure its production.
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The factory currently employs just over 100 people. The closure is planned for the end of 2005 or the beginning of 2006.
The company said the plans are based on an investigation of the structure of the company’s production initiated by the company’s board during the spring.
A recent focus by Cloetta Fazer on its strongest brands has led to increased sales of those particular brands, but has not compensated for reduced sales of other products, the company said, adding that over the last four years, production volume within Cloetta Fazer has fallen by 5,000 tons.
“Ever tougher competition on the market results in increased demand for cost efficiency to be able to maintain long-term profitability. This therefore requires us to focus our production processes on fewer, larger units, among other things,” said Cloetta Fazer’s CEO Karsten Slotte.
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By GlobalDataThe Norrköping factory currently produces only one of the company’s 12 largest brands, and the factory is the smallest in the group with annual production of 5,800 tons. Production of Polly, which is the Norrköping factory’s main product, will be moved to the factory in Ljungsbro, outside Linköping.
