IN Brief:
- Valio plans to relocate Oulu factory production to Riihimäki, Jyväskylä, and Joensuu.
- The proposal covers 264 employees, with possible reductions affecting up to 140 roles.
- The Oulu distribution warehouse, sales, and support functions would remain on site.
Valio is planning to relocate production from its Oulu factory to three other Finnish sites as it reshapes part of its domestic dairy manufacturing network.
Production would move to Valio’s factories in Riihimäki, Jyväskylä, and Joensuu. If the plan proceeds, production at Oulu would close in phases by the end of the first half of 2028, although no final decision has yet been taken.
The Oulu factory currently produces fresh dairy products, including milk and fermented milk products, as well as plant-based semi-finished products and ice cream. Valio says the site’s production volumes have declined while the general cost level has increased, putting pressure on the efficiency and profitability of the operation.
Change negotiations are due to begin at the factory on 25 May 2026 and will cover 264 people. Possible reductions apply to a maximum of 140 roles under the current plan. The negotiations are based on production and economic grounds, as well as operational reorganisation, and are expected to last three weeks.
The proposal would not remove Valio’s presence from Oulu entirely. The distribution warehouse would remain on the factory premises, along with sales and support functions serving the wider business.
For dairy processors, the proposed transfer shows how site networks are being reshaped around utilisation, cost, product mix, and future investment capacity. Dairy plants carry heavy fixed costs, and falling production volumes can quickly change the economics of a factory, particularly where chilled distribution and specialist process lines are involved.
A phased transfer extending into 2028 would give Valio time to manage production movement across product categories and receiving sites. The company will need to align staffing, equipment use, logistics, quality systems, and customer supply as production is absorbed into Riihimäki, Jyväskylä, and Joensuu.
Valio employs approximately 4,600 people in total, around 4,000 of them in Finland. It is owned through cooperatives by about 3,000 Finnish dairy farmers, which makes manufacturing efficiency closely tied to the long-term economics of domestic milk production.
Across European dairy, the pressure on plant networks is unlikely to ease. Product portfolios are changing, energy and labour costs remain difficult, and processors are being pushed to direct capital towards sites that can support more automated, flexible, and competitive production.
