Paulig consolidates spice production in Estonia, Mölndal factory to close

Food company Paulig has confirmed its plan to consolidate its spice production operations in Saue, Estonia. This move will result in the closure of the company's spice production facility in Mölndal, Sweden, a decision first announced in January 2026 and now finalized following negotiations with employee representatives.

The consolidation aims to enhance efficiency by optimizing capacity, production costs, and resource utilization. The transition is scheduled to be fully implemented by the summer of 2027. The closure in Mölndal affects a total of 95 employees, including 86 factory workers and 9 office-based staff.

"The decision to discontinue spice production in Mölndal is intended to strengthen Paulig's long-term competitiveness," stated Lenita Ingelin, CEO of Santa Maria and Country Manager for Paulig in Europe. "Our highest priority is to support all employees affected by this transition. Production in Saue will be scaled up gradually to ensure continuity of supply to our customers."

Paulig confirmed that its other operations in Sweden, including the tortilla factory in Landskrona and the warehouse in Kungsbacka, will continue unaffected. Sales, marketing, and product development functions for brands like Santa Maria, along with support functions, will remain at offices in Mölndal and Solna. The Saue facility, owned by Paulig for over 30 years, is described as having available space for future expansion.