Paulig Plans Production Shift to Estonia, 191 Swedish Roles at Risk
Food company Paulig is considering consolidating all Santa Maria brand production at its company-owned plant in Saue, Estonia by summer 2027, a move that would close its leased facility in Mölndal, Sweden, impacting 86 plant employees and 105 office roles to improve long-term competitiveness.
- —Paulig is considering consolidating all production for its Santa Maria brand at its Saue, Estonia plant, potentially by summer 2027, which would involve closing operations in Mölndal, Sweden.
- —The proposed consolidation aims to strengthen the long-term competitiveness of the Santa Maria brand by optimizing production capacity, reducing costs, and improving resource allocation.
- —The closure of the Mölndal facility would impact 86 employees at the plant and an additional 105 roles in the Mölndal office.
- —Paulig fully owns the Saue plant, which has been operational since 1993, offering greater flexibility for investment compared to the leased Mölndal facility.
- —A final decision will be made after consultations with trade unions in Sweden, in accordance with Swedish law.
Recap
Paulig's proposed consolidation is a calculated move to exchange higher operational costs in Sweden for greater strategic control and efficiency at its wholly-owned Estonian facility. This decision prioritizes long-term profitability and resource optimization over maintaining its current manufacturing footprint, shifting the economic burden onto its Swedish workforce. The move highlights a broader trend of centralizing production in locations that offer more favorable cost structures and investment flexibility.