Fazer has decided to move forward with its plan for a new chocolate factory the Finnish group had put on hold amid concerns about the country's fiscal policy.

Last year, Fazer paused plans to build a new plant in the southern city of Lahti after the Finnish government announced a proposal to raise VAT on confectionery. A year later, the idea was shelved.

Today, Fazer said it would proceed with the project, with the site set to be completed in 2028 at a cost of €400m ($467.3m).

”The investment of approximately €400m is the largest in Fazer's history and it is also significant from a Finnish food industry perspective," president and CEO Christoph Vitzthum said. "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."

The facility, located in the Pippo industrial area of Lahti, will span around 33,300 m². Lahti is already home to a Fazer crisps factory, a bakery, a gluten-free site and a xylitol facility.

Fazer's confectionery brands include Karl Fazer milk chocolate, Geisha and Duml.  

The company also operates in the bakery, non-dairy, and plant-based food markets. 

It employs more than 4,000 people in Finland, with other production plants in Vantaa and Lappeenranta.  

Fazer said Vantaa will continue to host its biscuit factory, a “large” bakery, head office operations, part of the chocolate production, and the Fazer Experience visitor centre.  

Lahti already houses a Fazer Mill, a sourdough bread factory, a bakery, a gluten-free bakery, and a xylitol factory. 

In May, Fazer announced an €11m investment to expand its rye bread production capacity in Lahti.  

In 2024, Fazer reported net sales of €1.18bn, with a 1% growth after currency adjustments. Comparable net sales, excluding the dairy division, rose by 3%.  

Comparable EBITDA increased by 3% to €141.4m, and the comparable operating result surged by 14% to €75.9m. Group net sales resulted in a profit of €34.7m, recovering from an €86.5m loss the previous year.