Orkla to move production from Lithuania to Latvia, Sweden

The company will end production at its Kaunas factory by early 2017, the daily Verslo Žinios reports.

“It’s a very important step for our company in terms of innovation. New technologies will be targeted at higher production capacity and products will be subject to new quality standards,” said Suslavičius-Felix chief executive Darijus Taraila.

“The decision was taken in order to continuously improve product quality and master the latest technology for innovative product development. Currently, the Kaunas factory meets these requirements but in making the decision the Board were thinking about the future. To try to improve the product quality and develop new innovative products requires additional resources,” he said.

The decision to move production to other European countries had nothing to do with the company’s performance, Taraila told Verslo Žinios.

In 2015 the company’s turnover hit €8.3 million, up 6.2% on 2014, while the company turned a profit of €600,000 in 2015.

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