Arla Foods invests US$46.4M in Videbæk facility

DENMARK – Arla Foods has announced a significant investment of nearly DKK 300 million (US$$46.4 million) to retrofit a spray-drying tower at its Arinco dairy facility in Videbæk, Denmark.

The investment comes on the heels of Arla’s decision, made in August 2024, to pivot the Videbæk facility exclusively towards ingredient manufacturing, moving away from its previous focus on Early Life Nutrition products.

This transition underscores Arla’s commitment to meeting the rising global demand for specialised dairy ingredients, particularly in markets where health and nutrition are paramount.

Luis Cubel, managing director of Arla Foods Ingredients, said: “This investment is strategically important for both Arla Foods and Arla Foods Ingredients. It supports our growth plans and enables the commercialisation of more highly refined products.”

The upgrade to the spray-drying tower is expected to facilitate the production of a broader range of specialised ingredients, catering to diverse customer needs across various sectors.

In addition to enhancing production capabilities, the project incorporates a heat recovery system designed to improve energy efficiency. By utilising waste heat from exhaust air to preheat intake air, the facility aims to significantly reduce its reliance on steam heating.

This is projected to decrease natural gas consumption by approximately 4,441 MWh annually, translating to a reduction of nearly 5% in the facility’s overall gas usage.

Consequently, Arla anticipates a decrease in its CO₂ emissions by around 900 tons per year, aligning with the company’s sustainability goals.

The technical rebuild of the spray-drying tower is scheduled to commence in July 2026, with initial test productions expected to begin by January 2027.

Cubel further noted: “We see strong and sustained demand for our ingredients, and with this investment, we are ensuring that we will also have sufficient capacity in the future”.

Arla Foods initiates US$210M mozzarella plant construction in UK

Additionally, the company commenced construction on a US$210 million mozzarella production facility at its Taw Valley Creamery in Devon, United Kingdom. 

The project, one of the largest investments by the farmer-owned company in the UK, aims to bolster the nation’s dairy industry and enhance Arla’s global mozzarella market presence. 

The plant is expected to begin operations as early as 2027, creating significant economic and employment opportunities in the region.

The state-of-the-art facility will incorporate advanced technology to produce high-quality mozzarella, catering to both domestic and international markets. 

Arla Foods, already a key player in the global cheese sector, intends to leverage this investment to strengthen its supply chain and ensure competitive pricing for its farmer owners. 

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