Paulig to consolidate Santa Maria production in Estonia

TALLINN - International food and beverage company Paulig is considering consolidating the production of its Santa Maria brand at its factory in Estonia to increase efficiency and ensure competitiveness, reports Postimees.

The potential change would involve closing operations in Mölndal, Sweden, and relocating production to Saue, where Paulig has operated a factory for spices, salsas, and sauces since 1993.

This move would enable Paulig to secure its long-term competitiveness by optimizing production capacity and costs, and allocating resources more efficiently.

"The goal of this potential change is to strengthen the long-term competitiveness of the Santa Maria brand. Rising production costs have put pressure on our profitability, and this change would help us better manage these increasing costs," said Lenita Ingelin, Senior Vice President for Paulig’s branded business.

Paulig's factory in Saue is fully owned by the company, unlike the Mölndal plant, which is in a rented building. Owning the Saue factory provides greater flexibility for investments and future growth.

The closure of the Mölndal spice factory would affect all 86 of its employees and some positions in the Mölndal office, for a total of 105 positions. The potential change is planned to be completed by the summer of 2027.

"Unfortunately, this potential change will affect our colleagues in Mölndal. Our priority is to provide comprehensive support to all those affected. We will initiate negotiations with employee representatives in Sweden in accordance with Swedish law," said Lenita Ingelin.

The potential change would not affect Paulig's other units in Sweden.

The company employs approximately 490 people in Sweden, and in addition to the Mölndal spice factory, Paulig operates a tortilla factory in Landskrona and a warehouse in Kungsbacka. Paulig's marketing, development, and support functions will also continue in the Mölndal and Solna offices. Similar roles at Paulig's Saue office will continue as normal.

A final decision will be made following consultations with trade unions in accordance with Swedish law.

Paulig invested 10 million euros in its Saue factory. The new investment has increased the factory's capacity and ensures a harmonized production process for high-quality, tomato-based salsas and sauces for the Santa Maria brand, Paulig announced in 2024.