Entrepreneurs face challenges after lease termination of historic cold storage facility in Helsinki

Entrepreneurs at the historic cold storage facility located in Helsinki’s Tukkutor are facing a challenging situation. The city has terminated the facility’s lease agreements. Asmo Votkin, CEO of Lihatukku Veijo Votkin, stated, “The situation is very serious for us and other local businesses, many of which have relied on the cold storage for generations.”

According to Votkin, all entrepreneurs have moved their cold storage operations out of Tukkutor, with some businesses forced to cease their freezing activities altogether. The city council decided to shut down the cold storage facility’s operations in October 2023, with lease agreements ending on September 30 of this year. The city-owned cold storage has served local entrepreneurs since 1953, hosting 150 tenants.

The rationale behind the lease termination, according to Peggy Bauer, CEO of Kaupunkitilat Oy, is the environmental risk posed by ammonia used as refrigerant and the poor condition of the facility. Bauer mentioned that the needed repairs were so extensive that investing in them was no longer feasible, noting, “The closure was inevitable.”

Business representatives have expressed dissatisfaction with the closure. Otto Lundström, chair of the Tukkutor entrepreneurs’ association, stated that many businesses are seeking alternatives for cold storage in surrounding areas. This move has complicated logistics, leading to longer delivery times and increased costs for local restaurants.

A new cold storage facility for Tukkutor has been in the planning stages for over 20 years, but funding issues have stalled progress. However, city officials assert that plans to construct a new facility will move forward if financing is secured, aiming to better serve local businesses and enhance overall operational efficiency.