Paulig Plans To End Operations At Sweden Spices Factory

Credit: Paulig/Cision News.

Paulig intends to cease accumulation astatine a spices mill successful Sweden and move operations to a works successful Estonia.

In a connection connected Tuesday (27 January), nan Finnish nutrient and drinks group said nan move would guarantee “long-term competitiveness by optimising capacity and accumulation costs and allocating resources much effectively”.

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The mill successful Mölndal, southbound of Gothenburg, which nan business rents, produces spices for Paulig’s Santa Maria brand, which is known for spices, Tex Mex and BBQ sauces.

Shutting down operations astatine nan mill successful Mölndal is expected to effect each 86 labor astatine nan site, arsenic good arsenic immoderate roles successful nan company’s Mölndal office, bringing nan full number of affected unit to 105.

Paulig intends to complete nan move by summertime 2027. A last determination connected nan closure will beryllium taken aft completing national consultations, nan business said.

The planned changes would not effect Paulig’s different Swedish operations.

Lenita Ingelin, SVP of branded business area at Paulig, said: “Our privilege is to support everyone who is impacted. Today, we person initiated national negotiations and fixed announcement of planned redundancies for 105 positions successful our operations successful Mölndal, Sweden.”

Paulig has astir 490 labor successful Sweden.

Alongside nan Mölndal facility, it runs a tortilla works successful Landskrona and a storage successful Kungsbacka.

Paulig’s marketing, income R&D, and different support functions successful Mölndal would proceed astatine nan Mölndal and Solna offices pursuing nan mill closure.

The Finnish group is readying to ore spices accumulation successful Saue, Estonia, wherever it has been operating a mill making spices, salsas and sauces since 1993.

The Saue installation employs 84 group and exports much than 80% of its output, Paulig said.

Unlike nan rented Mölndal plant, nan Saue mill is afloat owned by Paulig and, according to nan company, has room for description .

Paulig generated income of around €1.2bn ($1.4bn) successful 2024.

In July, nan institution said it will invest €12m to grow accumulation capacity for its Tex-Mex products its Berga works successful Barcelona, Spain. The caller statement is expected to beryllium operational by nan extremity of 2026 and create up to 30 jobs complete nan adjacent 5 to six years.

Paulig has precocious expanded done various acquisitions.

In December 2024, nan institution acquired the Dutch marque Conimex from Unilever to fortify its Asian nutrient business successful nan Netherlands.

That woody followed Paulig’s acquisition of UK-based Panesar Foods, nan shaper of sauces, salsas and condiments, successful October 2024.