Helsinki / FI. (fg) Fazer Group has signed an agreement to buy land plot in the eastern part of Leningrad Oblast where it is planning to build a new bakery. The investment supports Fazer´s growth strategy in Russia. The bakery will produce value added fresh and frozen bread and coffee bread. The total investment is estimated to exceed 100 million Euro.
«The greenfield bakery in St Petersburg supports Fazer´s growth strategy and strengthens our position as one of the leading bakery companies in Russia», says Fazer´s Group President Karsten Slotte. The 20 hectare land plot is located in Vsevolozhsky district of Leningrad Oblast, along the east side of the St Petersburg Ring Road.
«The new bakery will enable us to introduce new types of products and increase our deliveries to other areas in Russia. The bakery will produce value-added fresh and frozen bread and coffee bread. Our estimate is that the new bakery will offer job opportunities for several hundreds of new employees. We expect the total investment to exceed 100 million Euro», says Harri-Pekka Kaukonen, responsible for Fazer´s operations in Russia.
During the past three years, Fazer´s bakery operations in Russia have grown at an average rate of around 40 percent annually, and today they constitute 14 percent of the Group´s turnover. Fazer has during the past ten years invested ca 130 million Euro in its operations in Russia. Fazer´s turnover in 2007 in Russia was 170 million Euro and the division employs 3.700 people.
In addition, Fazer Group has since year 2006 operated in the food service business in Russia. The operations were at first aimed at offering high class food service to international and Scandinavian companies operating in St Petersburg. Moreover, Fazer Amica opened its first restaurant in St Petersburg in September 2007.
OTHER TOPICS FROM THIS SECTION FOR YOU:
- LG Chem and ADM: Joint Ventures in Illinois are canceled
- Wendy’s: Company plans to expand into Europe
- Delivery Hero: may face significant fine due to antitrust violations
- Emmi Group: intends to acquire Mademoiselle Desserts
- AB Foods: announces strong H1-2024 performance
- DSM-Firmenich: Queen Maxima inaugurates new dual head office
- RBI: Announces Investments to Drive Growth in China
- Europastry S.A.: puts its IPO process on hold
- McCormick: Reports Second Quarter Performance
- Reborn Coffee: Closes Master License Agreement for UAE
- General Mills: Reports Fiscal 2024 Fourth-Quarter Results
- SunOpta expands plant for processing plant-based beverages
- Britannia: Operating profit grew 10 percent in FY-2023
- Tate + Lyle and CP Kelco to merge to leading global player
- Ülker Bisküvi: announces Q1-2024 financial results
- Europastry: intends to go public on the Spanish stock exchange
- Europastry S.A.: publishes 2023 Annual Report
- Swisslog: announces new Americas region headquarters
- Reborn Coffee: Expanding Omni-Channel Strategy
- Mondelez International and Lotus Bakeries Join Forces