Arla Foods to invest €619m to increase production capacity

Danish food company Arla Foods is planning to invest €619m to increase its production capacity for milk powder, mozzarella and Arla Food Ingredients (AFI).

It will increase the production of its milk powder products to meet the growing demand in the international market.

As part of the initiative, the company intends to complete the powder tower located in Pronsfeld, Germany.

Arla Foods CEO Peder Tuborgh said: “As we come into the home stretch of our Good Growth 2020 strategy, it’s clear that it has been a very successful guide for us to grow our global and branded positions.

“Looking forward, we will continue to capitalise on these strengths, increase our innovation capabilities and most importantly, strengthen our commitment to sustainability to secure even more value for our farmer-owners going forward.”

It has also unveiled its plan to increase its mozzarella production capacity by investing in its Branderup facility in Denmark.

Arla Foods intends to upgrade its newly acquired Bahrain production site. It will also make significant investments to increase the capacity of AFI.

The company unveiled its latest investment plan alongside its 2019 financial results.

It posted revenue of €10.5bn for the year 2019, compared to €10.4bn in 2018.

The company said that its global brand portfolio registered a year-on-year branded sales volume increase of 5.1%.