The Samden milk powder factory in Åbenrå to cease operations at the end of June 2006.
Arla Foods’ Supervisory Board announced its decision at a meeting on Tuesday and the 80 employees at Samden were informed during the afternoon. In line with standard procedures, a negotiation committee has been set up which will assist those affected to find new jobs.
The decision is a result of Arla’s current savings programme and the upgrading and expansion of Arla’s other milk powder factories.
“We now have the capacity to handle raw product at the other plants which means that we cannot justify keeping Samden in operation,” explains Production Director Lars Dalsgaard, Arla Foods Ingredients. “We’re all under pressure to optimise and make operations more efficient.”
Some of Samden’s production will cease entirely, but the remainder will be transferred to other plants, e.g. whey production can be undertaken at Danmark Protein (DP) in Nr. Vium and Hoco in Holstebro. Up to five new employees will be needed at each plant.
When Samden closes, Arla Foods will have four milk powder factories in Denmark - Hoco, DP, Akafa in Aalborg and Arinco in Videbæk. The Group also operates factories in Visby, Götene and Vimmerby in Sweden.