The dairy group Arla has announced plans to invest in a stronger dairy structure and the processing of whey ingredients and to focus more on growth markets in 2012.
The company aims to improve its international competitiveness which also generating CO2 and energy savings.
“In times of crisis, it’s vital that we maintain our competitiveness. We believe that these investments in increased efficiency and rationalisation will support our long-term competitiveness and growth ambitions,” said Peder Tuborgh, Arla’s CEO.
Of the total investment forecast – DKK 1.8 billion (€240 million) –approximately half has been allocated to capacity and rationalisation projects, noted Povl Krogsgaard, Arla’s vice CEO, who oversees the company’s overall investment plan.
Arla said that its priorities are improving dairy structure to significantly enhance efficiency; generating more growth and added value in the company’s whey product area; allocating more resources for growth markets; and making environmental investments with a view to saving CO2 and energy.
“We have prioritised investments aimed at simplifying our dairy structure and increasing capacity as well as investments with a quick pay-back. Our aim is efficiency and lower production cost,” said Krogsgaard.
One of the biggest single investment areas in 2012 will be at Arla Foods Ingredients (AFI) where DKK 246 million (€33 million) will be invested in various projects, including a new drying tower at Denmark Protein in Videbæk. The tower, which is currently under construction, is an essential component in Arla’s joint-venture with the German dairy company, DMK.
“We’ve never invested so much in AFI before, but we’re doing so now because the subsidiary is performing extremely well and its results are helping to fund strategic initiatives in other areas. AFI is a world leader in its field and our investments will help us build on this,” said Krogsgaard.
In 2012, the Arla group expects to post a turnover of approx. DKK 59 billion (€8 billion).
