Arla Foods Ingredients is investing £32.5 million (295m DKK) in a new processing facility in Videbæk, Denmark, to meet booming demand for whey protein hydrolysates. The investment strengthens Arla Foods Ingredients’ position as a global leader in natural whey ingredients.
Hydrolysate is an important ingredient in products for infants with allergies and products designed for sports and clinical nutrition purposes.
The manufacturing plant is to be built next to Arla Foods Ingredients’ existing whey protein facility in Videbæk, Denmark, where Arla Foods Ingredients is also in the process of building a new lactose plant.
The new factory triples Arla Foods Ingredients’ capacity to produce whey protein hydrolysates. This expansion is part of the strategic initiatives to accelerate growth in Arla Foods Ingredients and prepare Arla Foods for a future increase in raw milk intake from its farmer owners.
Henrik Andersen, CEO of Arla Foods Ingredients, says: “When we speak with our customers they make it clear that whey protein hydrolysates are a very big part of their future plans and they are keen to work with companies who can guarantee ongoing security of supply. The investment in this factory sends out a very strong signal that Arla Foods Ingredients will continue to be at the vanguard of the hydrolysates sector and that we will be able to satisfy demand while adhering to the very strictest quality and safety standards.”
Operational by the end of 2016
Construction of the new plant is scheduled to be complete by October 2015 and the site will be operational towards the end of 2016. “Our new hydrolysates factory in Jutland will ensure we can maintain our position as the world’s leading supplier of high quality whey protein ingredients and thereby make a strong contribution to the Arla group and its owners, the dairy farmers,” says Henrik Andersen.
Simplifying the set up
The investment in the new plant has been approved by Arla Foods’ Board of Directors who also approved a related investment of £5 million (45m DKK) at Arla Foods’ HOCO dairy in Holstebro, where some of Arla’s whey protein hydrolysates currently are manufactured. This production will be moved to Videbæk in 2015-2016 to make room for further value-adding processing of milk. With the investment, Arla will increase the production of milk calcium at HOCO. The global demand for milk calcium as an ingredient is also increasing.
“In Arla Foods everything we do is about adding value to the raw milk from our farmer owners. By investing in production for milk calcium and hydrolysates we are strengthening our ability to do that, and to fully harvest the potential that is naturally inherent in milk,” says Henrik Andersen.
About Arla Foods Ingredients
Arla Foods Ingredients is a global leader in natural whey ingredients for products in a range of categories – from bakery, beverages, dairy and ice cream to clinical, infant and sports nutrition.
The cornerstones of Arla Foods Ingredients are innovative ingredients, world-class facilities and a staff of dedicated experts. Drawing on a portfolio of functional and nutritional whey proteins, milk minerals, lactose and permeate, Arla Foods Ingredients’ expert team delivers solutions that bring new food products quickly and efficiently to market. All ingredients are produced using state-of-the-art processing technology at our plant in Denmark, or by joint ventures in Argentina, Germany and the UK.
Arla Foods Ingredients Group P/S is a 100 per cent owned subsidiary of Arla Foods, a global dairy company and cooperative owned by dairy farmers in Denmark, Sweden, the UK, Germany, Belgium, The Netherlands and Luxemburg.
Arla Foods is a global dairy company and co-operative owned by 13,500 dairy farmers circa 3,000 of whom are British.
Dating back to 1881, Arla’s purpose is to secure the highest value for its farmers’ milk, while creating opportunities for their growth. With production facilities in 11 countries and sales offices in a further 30, Arla is the world’s sixth largest dairy company and largest supplier of organic dairy products. Arla has a total of more than 18,000 colleagues and its products are sold under the well-known brands Arla®, Lurpak® and Castello® in more than 100 countries.
Arla Foods UK is the largest dairy company in the country and is home to leading dairy brands Anchor, Cravendale, and Lactofree. It processes 3.5 billion litres of milk a year and has a turnover of £2.2 billion. As well as being number one in fresh liquid milk, butter, spreads and cream, Arla is the UK’s largest cheese manufacturer. It has also built the world’s largest fresh milk facility located at Aylesbury and has plans for it to be the first zero carbon site of its kind. The UK business has a team of approximately 4,000 colleagues located at its dairies, distribution centres and head office.