Arla to close packaging plant in Sweden

SWEDEN – Arla Foods has announced plans to close its Falbygdens Ost import and packaging facility in Falköping, Sweden, a decision that will impact around 60 jobs.

In a statement, Denmark-headquartered Arla said the decision was driven by long-running profitability challenges at the facility, adding that demand has fallen for large parts of the product range handled by Falbygdens Ost.

As part of the changes, dessert cheeses sold under the Falbygdens brand will also be phased out. Some of the most popular items in the range will be moved to Arla’s Castello brand, while aged Swedish cheese lines will continue under the Kvibille label.

Falbygdens Ost is primarily involved in importing, storing, processing, dividing and packaging speciality and dessert cheeses. It does not have its own cheese production and does not use milk from Arla’s farmer-owners, the dairy co-op added.

Anna Schreil, Head of Arla’s Logistics and Production in Sweden and Finland, called the closure a heavy message for both employees and the local community in Falköping.

She said: “We have great respect for Falbygdens Ost’s long history and for the people affected by the decision. At the same time, as a farmer-owned cooperative, we need to use our resources where they create the greatest long-term value for our owners.

“Therefore, we focus our investments and our operations on areas that contribute to more Swedish milk and strengthen Swedish food security.”

Arla has informed employees of the decision and said it is in close dialogue with the trade unions. The group added it will work with affected staff to provide support, both within and outside the company.

Arla will, however, retain its Osthuset facility in Energigatan, where Swedish-produced hard cheeses are stored and waxed. Around ten roles will remain there.

Despite the closure, Arla said it will continue to invest in Swedish dairy production, citing rising demand for Swedish food and a growing focus on food security.

Since 2023, the cooperative’s board has approved investments of more than Skr5bn ($446mm) in Sweden, including at sites in Götene, Linköping and Falkenberg.

Recently, Arla announced a €28.3 million (US$31.6 million) expansion at its cottage-cheese plant in Falkenberg to add capacity and modernise the site.

Arla reported revenue of €7.6 billion in the first half of 2026, up 1.3% on the first six months of 2025. Net profit rose to €213 million from €158 million a year earlier.

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