Leading European dairy processor Arla has announced that it is to invest €38m in a new whey-focused manufacturing plant, which 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 plant will produce Hydrolysate, which is an important ingredient in products for infants with allergy, and products designed for sports and clinical nutrition purposes.

The new factory triples Arla’s 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 owner farmers.
Construction of the new plant is scheduled to be complete by October 2015 and the site will be operational towards the end of 2016.

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.

“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 milk farmers, says Henrik Andersen.