Finnish companies freeze their business expansion because of falling demand

Finnish companies freeze their business expansion because of falling demand
Publishedо 26 December, 2017
Fazer company, one of the largest producers of bread in the Northern capital, has suspended the construction project of a new plant and made a decision to focus on existing sites in 2018.

It is assumed that the decision was taken because the decline in demand for bakery products and new forms of work between producers and retailers. Currently the largest retailers of the Russian Federation took responsibility to destruct and recycle unsold goods. As a result, stores began to buy less bread.

In addition, the prevailing view among the Finnish manufacturers is that the investment climate in Russia is not the most attractive, and existing barriers in the administrative sector slow development of new projects. Experts of the Russian Federation, on the contrary, think that excessive caution of the Finnish business will lead to the fact that their place in the market will be taken by entrepreneurs from other countries.

Source: fontanka.fi