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Arla pours €38m into facility to meet whey demand

By Shane Starling+

01-Sep-2014
Last updated on 02-Sep-2014 at 17:28 GMT2014-09-02T17:28:16Z

Arla will triple whey hydrolysates output by 2016
Arla will triple whey hydrolysates output by 2016

Dairy giant Arla's ingredients business is building a new whey processing facility for €38m to meet rising demand for the dairy fraction in infant, sports and clinical nutrition.

The facility is going up next to its existing plant in Videbæk, Denmark and is expecting to be fully operational by 2016, tripling Arla Food Ingredients’ (AFI) whey protein hydrolysates output.

Supply security

“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,” said Henrik Andersen, AFI CEO.

“The investment in this factory sends out a strong signal that AFI will continue to be at the vanguard of the hydrolysates sector and that we will be able to satisfy demand while adhering to the strictest quality and safety standards.”

WPC expansion

AFI’s ArNoCo joint venture withGerman dairy cooperative DMK, announced in August will process around 700,000 tonnes of whey protein concentrate (WPC) for various uses at a new plant in Nordhackstedt in northern Germany.

“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," said Hans Jørgen Lauridsen, project director, ArNoCo.

AFI has a target to double its revenue to €760m by 2017.

Other whey suppliers report an ongoing situation of demand outstripping supply.

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