Paulig to Consolidate Spice Production in Estonia

Paulig, an international food and beverage company, intends to consolidate its spice production for the Santa Maria brand to its facility in Saue, Estonia, by the summer of 2027. This strategic move would involve shutting down operations at its current factory in Mölndal, Sweden, and concentrating all spice manufacturing at the existing site in Estonia.

The company stated that the primary driver for this consolidation is to improve long-term competitiveness by optimizing production costs and capacity utilization. Rising operational expenses have reportedly put pressure on profitability, and centralizing production is seen as a way to manage these costs more effectively.

The proposed closure in Mölndal would impact all 86 employees at the factory, along with some roles at the company's Mölndal office. Paulig has initiated union negotiations and issued redundancy notices for 105 positions in Mölndal, comprising all factory workers and administrative staff. The Saue facility, which is fully owned by Paulig, is described as having expansion capabilities.

Paulig emphasized that this planned change would not affect its other operations in Sweden, including a tortilla factory in Landskrona. Marketing, sales, R&D, and support functions in Mölndal and Solna will continue as normal. The final decision is contingent upon the completion of consultations with employee representatives.