Valio plans to close Oulu factory, putting up to 140 jobs at risk

Finnish dairy company Valio has announced plans to close its production facility in Oulu and relocate operations to other parts of Finland, launching co-determination negotiations affecting 264 employees, according to national broadcaster Yle. Up to 140 workers face potential redundancy.

The announcement was made to employees on Friday, just as many were beginning or preparing for their summer holidays. Harri Lantto, the chief shop steward at the Oulu plant, said the news came as a complete shock.

“There were no tears of joy from anyone. People were truly sad and frightened, and that is completely understandable,” Lantto said.

Workers were particularly upset that the closure plans were revealed on the eve of the summer holiday season, with some employees already on leave when the announcement was made. Lantto was blunt in his assessment: “This is quite the holiday gift for everyone.”

Co-determination negotiations are set to begin on Monday. Valio has said it intends to offer affected workers positions at other company sites. The Oulu plant’s operations are planned to be transferred to Riihimäki, Jyväskylä, and Joensuu.

Lantto said younger workers have been more open to the idea of relocating, but that the majority are not. “Most of them say they have built their lives in Oulu. Moving to another Valio site is not an option for them,” he said.

Valio cited declining milk consumption and rising costs as the main reasons behind the closure plan. Production in Oulu would wind down in phases by mid-2028 under the current proposal. A distribution warehouse and some other functions would remain in the city.

The Oulu factory currently employs around 300 people in production.