The new Orkla chocolate factory in Ādaži will start operating in the middle of next year, instead of in the fourth quarter of this year as previously planned, because Covid-19 has introduced adjustments in its establishment, said Tom Didrihsons, Chairman of the Board of Orkla Latvija food concern.
“During the emergency, we were able to put the factory building into operation in Ādaži. The next stage was the relocation of production lines and the installation of new lines, which required the participation of manufacturers’ representatives, but was canceled due to restrictions on international travel,” said Didrihsons.
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He pointed out that the production lines had to be relocated before production began for the Christmas season, ie by the end of August.
“Given that this could not be done, we unfortunately decided to postpone the relocation of lines until January, when production of Christmas products will end. This means that the new plant will be fully operational at the end of the first half of the year or the beginning of the second half,” Didrichson explained.
He also pointed out that a project has been developed for the new Orkla biscuit and waffle plant, and the process of selecting builders is underway.
The head of “Orkla Latvija” also admitted that it is easier to find seasonal employees this year, but the issue of labor availability as such is still a serious problem.
“As I mentioned, at the end of August we start production of the Christmas season, when the workload is growing in the Laima and Selga biscuit factory, and during this time we always attract additional employees. Yes, this year the availability of employees is higher than in recent years, but here “It must be said at the outset that it has been catastrophic in recent years. Therefore, I will not say that everything is very good now and the employees are free to find. It is not, and it is still quite difficult to attract employees,” said Drihsson.
He emphasized that the pandemic would end sooner or later, so the issue of migrant workers needed to be addressed. “There is a great national touch to this issue, but no one is calling for us to close our eyes and open our borders completely. But at the same time, it must be understood that we are part of the European Union, part of global labor market processes. However, the situation is that there is work, but there are no labor, “the head of” Orkla Latvija “emphasized.
With the establishment of the new “Laima” factory, it will be possible to double the production volumes compared to the existing ones, if there is a corresponding demand. Initially, it was planned that the production process at the new Laima plant could start in the fourth quarter of 2020. 8.9 million euros were invested in the construction of the Laima plant in Ādaži.
Next to the Laima plant, there will be another Orkla Latvija plant, which will specialize in the production of biscuits and waffles. It is planned to open it in 2022. A total of 13 hectares of land were purchased for the establishment of both plants in Ādaži, of which the biscuit and waffle plant will occupy the largest part.
According to preliminary data, the total turnover of Orkla Latvija last year was 117.3 million euros, which is 3.7% more than a year earlier, but the companies’ profit amounted to 6.7 million euros. “Orkla Latvija” represents and develops “Laima”, “Selga”, “Staburadze”, “Ādažu Chips”, “Taffel the Original Snacks”, “Pedro”, “Spilva”, “Gutta”, “Everest”, “Latplanta” and other brands. The company is part of the Norwegian concern Orkla.
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