RESHORING CASE

DAVA Foods Finland

Company details
Code: 
dava
Company name: 
DAVA Foods Finland
Group name: 
DAVA Foods
Company country: 
Finland
Group home country: 
Denmark
Number of employees: 
200
Sector: 
C - Manufacturing
Sector detail: 
C10 - Manufacture of food products
Sub-sectors: 
C10.5 - Manufacture of dairy products
Reshoring details
Reshoring announcement date: 
21/09/2016
Starting implementation date: 
September, 2016
End of Implementation : 
December, 2016
Reshored to: 
Finland
Location of affected unit(s): 
Kaarina
Location code: 
FI1C1
Reshored business function: 
Production
Partial or Total reshoring: 
Total
Reshoring governance mode: 
In house (in own facilities)
Reasons for reshoring: 
Lack of ex-ante location planning
Proximity to customers
Retailer/customer pressure (e.g., Wall-Mart)
Streamlining of supply chain
Case narrative: 

DAVA Foods Finland is an egg producer that offshored liquid egg products from Finland to Sweden. However, customers did not appreciate the change while the company did not receive the expected advantages.  Thus, the production will be returned to Kaarina in Finland by the end of 2016. One of the challenges was the short shelf life of the products while the level of production costs was roughly the same in Finland and Sweden.  On the other hand, production in Sweden increased the level of logistics expenses. The company has to invest EUR 300,000 in new machinery. Production volume is 4mn kilos per year. DAVA Foods Finland is equally owned by Finnish cooperative Munakunta and Danish DAVA Foods.

Sources: 

Turun Sanomat, 21/09/2016

Sources link: 

http://www.ts.fi/

Offshoring details
Offshoring location: 
Sweden
Offshored business function: 
Production
Offshoring governance mode: 
In house (in own facilities)
Reason for offshoring: 
High productivity in the host country