1.17 million euros are invested in the production development of the company Orkla Foods Latvia in 2016. The major share of investment is related to specialization of Orkla Foods Latvia – production of sauces and mayonnaises for Estonian, Lithuanian and Finnish markets. To install all required production equipment, production unit premises of Orkla Foods Latvia in Babite region are reconstructed.
“An ambitious project is launched in 2016 related to structural changes in all production units of Orkla Foods Latvia in the Baltic states. The main objective of this project is to implement specialization of production units, making them more efficient in production of particular groups of products. In relation to this project the production unit of Orkla Foods Latvia in Babite region specializes in production of sauces and mayonnaises, becoming a manufacturer of these products not only for Latvian, but also for Estonian, Lithuanian and Finnish markets,” informs Lolita Bemhena, the Head of Orkla Foods Latvia.
While implementing the company specialization, additional equipment for production of dressings (salad sauces) and mayonnaises, as well as specialized lines for filling these products in plastic bottles and tubes are installed at the production unit of Orkla Foods Latvia in Babite region. In order to make the placement of all required equipment possible, production premises of the company are reconstructed and reorganized. The costs of acquisition and installation of this equipment, and production reconstruction constitute 783,000 euros.
The total amount of investment of Orkla Foods Latvia in this year comprises 1.17 million euros. The amount of investment of the company itself is 1.133 million euros, whereas 37,000 euros are provided as co-financing of the European Union structural fund EAFRD.
Other investment projects of this year are mainly related with raising of manufacturing productivity and increasing of production capacity in existing production processes of tomato sauces and mayonnaises. A depalletizer is installed for the tomato sauce packing line, which ensures automatic feeding of empty jars on the packing line; previously it was done manually. Thus, the productivity of the tomato sauce packing line is increased, and the working environment improvements are implemented, because manual feeding of jars is physically very hard and exhausting task. In addition to the previous production equipment, a new mayonnaise preparation machine is installed, which allows ensuring preparation of mayonnaise concurrently for several packing lines, significantly increasing mayonnaise production capacity of the company Orkla Foods Latvia.
“Overall, after completion of investment projects in this year, it is planned, that the production volume of the production unit of Babite region will increase by 30% in 2017. The largest increase of manufactured products is planned in the segment of tomato sauces and dressings. For example, Orkla Foods Latvia has to be able to produce 3,000 tons of sauces and mayonnaise per year for Estonian and Finnish markets alone,” explains the Head of Orkla Foods Latvia.
Export markets of Orkla Foods Latvia products are Canada, the Czech Republic, Denmark, Estonia, Finland, Germany, Great Britain, Ireland, Lithuania, Norway, Russia, Slovakia, Sweden, Ukraine, USA.
In the image:
Mayonnaise in tubes is manufactured for Finnish market. The mayonnaise manufactured by Orkla Foods Latvia can be found in Finland under the brand Felix.