Fazer’s CEO of Lahti’s Factory Project Suspension Threat: “It was not bluff”

Fazer CEO Christoph Vitzthum thank Petteri Orpo (co), the government for its decision to abandon intentions to increase the VAT of sweets and chocolate.

Vitzthum promises to continue the construction project of Fazer’s new chocolate factory in Lahti.

The company’s threat to the Board of Directors was the construction of the factory in another domestic market in Fazer in Sweden or in another country.

“Finland needs economic growth and investment, and they need a common will and proactive and transparent legislation to speed up them,” Fazer outlined in a news release published on Tuesday.

Government planned that sweets and chocolate would be transferred from the reduced 14 % VAT rate to the general VAT rate of 25.5 %.

The return on the tax increase was estimated to be EUR 83 million in 2026.

For example, biscuits, ice cream or pastries would not have been covered by the increase.

The increase would have entered into force from June 1.

According to criticism, the government’s decision to treat different sugar products on different VAT populations would have been contrary to EU law.

CEO Christoph Vitzthum estimates that the government’s position has turned to the bill after the consultation.

“68 speakers and 59 completely stupid,” he lists.

“I guess it can only be said that the statement process has worked well.”

Fazer In the opinion, only the increase in VAT on sweet and chocolate would have been contrary to EU legislation.

In the consultation round, Fazer received support from four professors, says Vitzthum.

“I think the legal arguments were very strong, a discrimination aspect and a state support aspect.”

“EU law would surely have gone.”

Vitzthum The extensive support of the entire food industry is also praised.

Many other food industry investment projects had been on ice due to the government’s tax increase, he says.

“Got support from colleagues.”

According to Vitzthum, the problem for public health is not that the people eat Fazer’s candies, but that citizens do not move and eat too much.

Vitzthum tells Fazer’s investments in the Lahti Chocolate Factory so far over ten million euros.

It causes suspicion that the suspension of a long -developed project was bluff.

Especially as Fazer had said that much of the production of the new factory would go to export.

There is no value added tax in export products, meaning that the VAT location of the factory would not have been affected by Finland’s VAT in terms of international growth.

“It wasn’t bluff,” Vitzthum replies. “We do not threaten or bluff.”

He says that the company has received numerous contacts from Sweden after the construction of the factory’s construction abroad was revealed.

Vitzthum says that international growth is more expensive than at home.

“In order to develop and engage in exports, it requires that the domestic market is in good shape.”

That is, does Fazer now receive a tax increase of EUR 80 million per year from the government to support his export efforts?

“It’s not a Fazer who would have paid VAT. It is charged from consumers. ”

“We just want to have level playfied [tasavertainen kohtelu].”

“And it’s not a support, it [verokorotus] would have been a punishment. ”

Vitzthum says that the tax decision also guarantees that new investments will be placed at the Fazer’s Lappeenranta plant.

“There will certainly be investments there.”

Fazer does all its sugar sweets in Lappeenranta.

Bay mayor Niko elbow considers the decision announced by the government on Tuesday.

“It was great that cooperation with the government was close to taking into account the perspectives of us and the companies.”

“We expect this to bring work and growth investments throughout Finland.”

To do In January 2022, he announced that he was looking for a new place in Finland for his chocolate factory.

Lahti began to extensively renovate the Pippo-Kujala industrial area to the condition of Fazer.

In the spring of last year, Lahti was completed for its part.

“We are talking about investment of nearly EUR 30 million,” Kyynäräinen says of the city of Lahti about the investment in the Chocolate Factory project so far.