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Kekkilä-BVB closes production plant in both Finland and Sweden

March 30, 2023

As part of Kekkilä-BVB’s previously announced efficiency measures, it has been decided to close two production plants. The Haukineva plant in Seinäjoki will be closed and production will be partly transferred to the company’s other production plants in Finland. The production lines of the Seinäjoki plant will be closed by the end of June. We will also close the Bredaryd plant in Sweden. The production lines of this plant will be transferred to our other production sites in Sweden, Finland, Estonia and the Netherlands. We will inform separately our customers directly about our product-specific plans.

Why the efficiency improvement measures

The efficiency improvement measures became necessary due to major changes in the market. The fall in demand after the Covid19 peak, the rise in logistics, energy and raw material prices following the Russian invasion of Ukraine all have a major impact on Kekkilä-BVB’s operations and cost structure, both directly and through our customers.

As part of the efficiency improvement measures programme, we launched a study of measures that are considered to have a rapid impact on optimising the company’s fixed costs in production. At this stage, we are focusing on optimising production volumes, plant locations and logistics costs for all growing media products in order to meet current and expected market demand at current cost levels in the coming years. The study covers all 14 Kekkilä-BVB production sites in Finland, Sweden, the Netherlands, Estonia and Germany.

Read more on the News release from Feb 8, 2023