Arla Foods’ Supervisory Board provisionally approved the first of three structural projects under Arla Foods’ overall structural plan earlier this week.
The project concerns the production of large, round cheeses in Sweden at Kalmar, rindless cheese at Falkenberg and the expansion of the powder plant at Visby in Gotland. The dairies in Øland and Stånga in Gotland will be closed down.
Staff at Øland and Stånga dairies were informed of the decision on Tuesday.
The move involves the expansion of the Kalmar dairy at a cost of DKK 55 million to increase capacity to 18,000 tons cheese per year. 4 extra staff will be required. 95 employees at the cheese dairy in Øland will lose their jobs in 2003 when the transfer is complete.
The closure of the dairy in Stånga is expected to take place in July 2003 and will affect 42 employees.
Expansion of the dairy at Falkenberg at a cost of DKK 83 million will increase tonnage from the current 4,300 per year to 15,000 when production of rindless cheese from the dairy in Kalmar is transferred here.
A further 15 staff are expected to be employed at Falkenberg once the dairy is completed.
The decision also means a capacity expansion for milk powder production in Visby from the current 100 million kg per year to 160 million kg per year. The investment is expected to total DKK 79 million.
Talks with the trades unions on the closures will be initiated.
In July, Arla Foods’ Supervisory Board approved the overall structural plan involving investments of DKK 2.3 billion and the closure of 17 dairies in Denmark and Sweden.