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Construction begins for new milk powder factory

Press Release   •   Aug 28, 2003 17:13 CEST

 

After some months’ delay, construction of the new milk powder factory in Vimmerby began thursday 28. August.

According to the original timetable, work on the factory should have begun in April. However, Vimmerby Energi ab, which in accordance with Arla Foods’ agreement with Vimmerby local council, should have supplied power to the factory, pulled out.

The problem has now been solved by Arla Foods installing its own bioenergy plant which means that the factory will be supplied with inexpensive and environmental-friendly energy as the fuel will come from forests in the vicinity.

“Negotiations with Vimmerby Energi caused the delay to the start of construction,” says Project Manager Per Mogren Christiansen. “But by combining the two first stages of construction, we’ve gained time and are now approx. 10 weeks ahead of schedule.”

The factory must be ready for construction in November 2004,

Originally, SEK 700 million had been earmarked for the project, but with the installation of the bioenergy plant costs will increase.

The factory will have a capacity for 380 million kg milk per year corresponding to approx. one fifth of Arla Foods’ milk volume in Sweden and will produce 44,000 tons milk powder.

The construction of the new milk powder factory is part of Arla Foods’ structural and strategy plan from 2001.

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