Arla Foods Supervisory Board has approved several projects as part of the overall structural plan announced in June.
In Denmark DKK 290 million has been allocated to the expansion and upgrading of spray towers at the powder factory, Arinco, in Western Jutland and to the packaging plant and production upgrades at the Akafa powder factory south of Aalborg.
The decisions mean that the plant at Kjersing will be closed following the completion of the expansion programmes in 2003. Kjersing currently employs a staff of 94 of whom 50 can be expected to be offered work at Arinco or Akafa.
Two new towers will be built at Arinco for licenced production and instant products. A new warehouse will also be constructed.
At Akafa one tower will be upgraded. Packaging machinery for canned production will be transferred to Akafa from Kjersing.
The investment means a rise in capacity of 30-35,000 tons. At the same time the potential for production of more profitable products will be greatly enhanced.
The extra capacity will primarily relieve Samden which currently acts as a buffer during periods of fluctuating milk supplies. Instead Samden will be able to focus on special, whey-based products.