“Rising production costs have put pressure on our profitability, and a merger of our spice factories would help us manage increased costs more effectively and strengthen Paulig's competitiveness in the long term,” said Lenita Ingelin, CEO of Santa Maria and Head of Europe at Paulig, in a press release.
The decision would mean the Mölndal factory would be closed and all 86 employees laid off. The other 19, who would be given notice, work at the company's office in Mölndal.
Union negotiations have now begun, and the merger is planned to take place no later than the summer of 2027. Paulig has approximately 490 employees in Sweden.
