Lantmännen Unibake Sweden, the company behind the well-known Korvbrödsbagarn brand, has announced a substantial investment of approximately SEK 700 million to construct a new production facility in Örebro. This strategic expansion represents one of the most significant developments in Sweden's industrial baking sector and underscores the company's commitment to meeting rising demand for specialty bread products.

Strategic Growth in Sweden's Baking Industry

Jonas Lindell, Managing Director of Lantmännen Unibake Sweden, emphasized the strategic importance of this development:

"This new facility allows us to meet growing customer demand while strengthening our position in the region. It reflects our strong commitment to Swedish food production and represents a long-term investment in reliability, product quality and innovation."

The Örebro site has been central to Lantmännen Unibake Sweden's operations since 1963, evolving over six decades into one of Europe's largest specialty bakeries focused on hotdog and burger bun production. Currently, the facility produces over two million pieces daily, establishing it as a major player in the European baking landscape.

Sustainable Manufacturing at the Forefront

Environmental responsibility features prominently in the expansion plans. The facility will incorporate solar panels and advanced technology upgrades designed to reduce environmental impact.

"The building incorporates a range of measures that support our climate ambitions. These enhancements reflect our continued focus on responsible growth and incremental improvements in environmental performance," Lindell explained.

This approach aligns with broader industry trends toward sustainable manufacturing practices and demonstrates how traditional food producers are adapting to meet contemporary environmental expectations while scaling operations.

Facility Specifications and Timeline

The new production facility will span 13,000 square meters across three floors, constructed within the existing factory grounds in Örebro. This expansion builds upon recent infrastructure developments, following the 2023 inauguration of a new central warehouse at the same location.

Construction is scheduled to begin in autumn 2025, with full operations expected to commence in 2027. The two-year construction timeline reflects the complexity and scale of modern industrial baking facilities, which require specialized equipment and precise environmental controls to maintain product quality at high volumes.

Market Position and Future Outlook

The investment represents confidence in the growing market for specialty bread products, particularly hotdog and burger buns. As food service sectors continue expanding, demand for high-quality, consistently produced bread products has increased significantly.

"This investment is an important addition to our business, built to meet the future and secure our leadership in the bread industry for years to come. We're investing boldly in our people, in Swedish food production and the growing market for hotdog and burger buns," Lindell noted.

The expansion also reflects broader trends in the European food industry, where companies are investing heavily in domestic production capabilities to ensure supply chain resilience and meet increasing consumer demand for locally produced foods.

Industry Impact

This substantial investment highlights the continued growth of Europe's industrial baking sector. The company's decision to expand in Sweden rather than relocate production demonstrates confidence in Swedish manufacturing and the value of maintaining operations close to key European markets.

The Örebro expansion positions Lantmännen Unibake Sweden to serve growing demand across Europe while maintaining the quality and consistency that has established the Korvbrödsbagarn brand as a market leader. As the facility becomes operational in 2027, it will likely influence competitive dynamics in the specialty bread market and potentially inspire similar investments by other major players in the industry.