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Arla Foods to invest DKK 1.6 billion

Press Release   •   Oct 06, 2003 11:48 CEST

Arla Foods’ Board of Directors’ approval of the Group’s investment budget for the coming year of DKK 1.6 billion means that the investment levels from the preceding financial year will be maintained.

The investment budget falls into three roughly equal parts of which the Production Division accounts for the largest, DKK 546 million.

Of this, projects under the structural plan total DKK 220 million for, primarily, blue cheese production at Høgelund Dairy which will see capacity increase by 6,000 tons to 15,000 tons.

The Ingredients Division accounts for approx. DKK 500 million, mainly for the new milk powder factory at Vimmerby in Sweden. Construction has commenced and is expected to be completed in November 2004.

The Denmark and Sweden Divisions and other parts of Arla Foods’ organisation, make up the remaining third of the budget. Investment for the Denmark Division will be DKK 204 million while DKK 230 million will be invested in Sweden.

A new filling line for soups and sauces will be installed at Esbjerg Dairy and UHT production will be expanded at a total cost of DKK 32 million. The Sweden Division’s largest single project is the ongoing expansion and automatisation of the cold store at Jönköping at approx. DKK 42 million.