Norway-based supplier of branded consumer goods Orkla’s board of directors has announced plans to consolidate the company’s biscuit production activities and build a new biscuit factory, which will be located outside Riga, Latvia.

The development forms part of group’s strategy of focusing its production operations within fewer and more efficient plants.

"The new production plant will allow us to focus investments on new technology, increase cost-effectiveness and create a stronger production platform."

Orkla executive vice-president Ann-Beth Freuchen said: “By investing in a new, modern factory and concentrating production in one location, we can strengthen our future competitiveness and innovative ability, and at the same time reduce our climate footprint.

“The new production plant will allow us to focus investments on new technology, increase cost-effectiveness and create a stronger production platform.”

The company’s biscuit production activities at its Kungälv and Riga facilities will be closed and relocated to the new factory as part of the consolidation initiative.

Orkla expects the closure of the facilities to be completed by the end of 2022.

The company noted that it explored several different alternatives for its biscuit future production operations and subsequently elected to build a new factory near Riga.

There are currently approximately 350 personnel working at Kungälv facility.

Orkla intends to retain the product development centre at the Kungälv site, while its biscuit production activities will be transferred to a new location in 2022.

Biscuits production represents one of Orkla’s key business segments and the company holds a significant market share in the Nordic and Baltic regions.