Breaking News on Supplements & Nutrition - EuropeUS edition

Headlines > Industry

Arla Foods, DMK joint ingredients venture begins WPC, lactose production

Post a comment

By Mark Astley+

Last updated on 01-Sep-2014 at 16:21 GMT

ArNoCo's Nordhackstedt plant.
ArNoCo's Nordhackstedt plant.

Arla Foods Ingredients (AFI) joint venture ArNoCo has begun production of whey protein concentrate (WPC) and lactose at its newly-constructed €50m (US$66.8m) plant in Germany.

ArNoCo, a 50/50 joint venture between AFI and German dairy cooperative DMK, will process around 700,000 tonnes of whey at the plant in Nordhackstedt, near the Danish border.

Whey, supplied by a neighbouring DMK plant producing mozzarella and Gouda, will be converted by ArNoCo into WPC for use in the dairy, nutrition, and bakery sectors, said AFI.

An additional 25,000 tonnes of lactose will be produced at the plant and sold as AFI Dry Blend for infant formula.

Currently running at around 80%, Nordhackstedt should reach full capacity in September 2014, said AFI.

AFI and DMK first announced plans to establish ArNoCo - a 50/50 joint venture - in March 2011.

Each agreed to invest €44m (€58.8m) in ArNoCo, with €35m (€46.7m) initially set aside to to finance the construction of the Nordhackstedt plant.

Now operational, the Nordhackstedt whey processing facility will "enhance" AFI's position in the global supply of WPC and lactose, said Hans Jørgen Lauridsen, project director, ArNoCo.

“The market for these products is growing faster than the ingredients industry can supply them, so the establishment of ArNoCo in cooperation with DMK is a significant development," he said.

While established in 2011, the joint venture with DMK is in line with Arla Foods latest five-year growth plan, Strategy 2017.

Among the targets set by Arla Foods in 2013, AFI was challenged to double its revenue by 2017 to 5bn DKK (US$900m, €760m).

Subscribe to our FREE newsletter

Get FREE access to authoritative breaking news, videos, podcasts, webinars and white papers. SUBSCRIBE

Post a comment

Comment title *
Your comment *
Your name *
Your email *

We will not publish your email on the site

I agree to Terms and Conditions

These comments have not been moderated. You are encouraged to participate with comments that are relevant to our news stories. You should not post comments that are abusive, threatening, defamatory, misleading or invasive of privacy. For the full terms and conditions for commenting see clause 7 of our Terms and Conditions ‘Participating in Online Communities’. These terms may be updated from time to time, so please read them before posting a comment. Any comment that violates these terms may be removed in its entirety as we do not edit comments. If you wish to complain about a comment please use the "REPORT ABUSE" button or contact the editors.