18 March 2008 - Fazer has signed an agreement to buy land plot in the eastern part of Leningrad Oblast where it is planning to build a new bakery.
The investment supports Fazer’s growth strategy in Russia. The bakery will produce value added fresh and frozen bread and coffee bread. The total investment is estimated to exceed 100 M€.
‘The greenfield bakery in St Petersburg supports Fazer’s growth strategy and strengthens our position as one of the leading bakery companies in Russia’, says Fazer’s Group President Karsten Slotte.
The 20 hectare land plot is located in Vsevolozhsky district of Leningrad Oblast, along the east side of the St Petersburg Ring Road.
‘The new bakery will enable us to introduce new types of products and increase our deliveries to other areas in Russia. The bakery will produce value-added fresh and frozen bread and coffee bread. Our estimate is that the new bakery will offer job opportunities for several hundreds of new employees. We expect the total investment to exceed 100 M€’, says Harri-Pekka Kaukonen, responsible for Fazer’s operations in Russia.
During the past three years, Fazer’s bakery operations in Russia have grown at an average rate of ca 40 per cent annually, and today they constitute 14 per cent of the Group’s turnover. Fazer has during the past ten years invested ca 130 M€ in its operations in Russia. Fazer’s turnover in 2007 in Russia was 170 M€ and the division employs 3 700 people.
In addition, Fazer has since year 2006 operated in the food service business in Russia. The operations were at first aimed at offering high class food service to international and Scandinavian companies operating in St Petersburg. Moreover, Fazer Amica opened its first restaurant in St Petersburg in September 2007.