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Paulig's Estonia Production Shift Hinges on Swedish Union Accord
Food producer Paulig's plan to consolidate all Santa Maria spice manufacturing at its company-owned factory in Saue, Estonia, by 2027 is now contingent on reaching a closure agreement with Swedish trade unions for its leased Mölndal facility.
- —International food producer Paulig is planning to consolidate all production of its Santa Maria brand of spices at its existing factory in Saue, Estonia, a move that would necessitate the closure of its leased facility in Mölndal, Sweden.
- —The potential relocation is contingent on reaching an agreement with Swedish trade unions regarding the closure of the Mölndal plant.
- —If the negotiations are successful, the transfer of production equipment could begin as early as summer 2026, with the full relocation expected to be completed by 2027.
- —The expansion of the Saue factory is anticipated to create additional jobs, significantly increasing the current workforce of approximately 85 employees.
Recap
Paulig's proposed consolidation is a calculated move to exchange a leased Swedish facility for a wholly-owned Estonian plant, aiming for greater operational control and flexibility. The entire strategy's execution now rests on labor negotiations, placing Swedish trade unions in a pivotal role that will determine the timeline and feasibility of this cross-border manufacturing shift.