Arla has announced big plans for the coming year with the company looking to invest in a host of dairy expansions.
The business is looking to increase its global production for its most profitable products through the purchase of new facilities. Arla's board of directors has already given the go-ahead to the organisation's investment proposals which is due to total DKK 2 billion (£230.3 million). The money is designed to go towards capacity expansion, rationalisations measures, environmental improvements, maintenance, quality and innovation.
Officials at the company have said the main focus of the investment will be for the expansion of production facilities. Around 40 per cent of total amount has been earmarked for this and the largest single payment will be for the creation of a new facility at Nr. Vium in Denmark. It will be used for the manufacture of highly-processed whey-based lactose products and put into areas such as child nutrition for global sale.
Povl Krogsgaard, head of Arla's investment plan, said: "This year, the largest proportion of our investments will be devoted to expanding the production capabilities of a number of our dairies which manufacture products for export to the growth markets outside the EU.
"Our ability to improve profitability for Arla's owners is dependent upon us increasing sales of quality products all over the world, which is why, during 2013, we are investing in new production and expanding existing facilities."
Arla stated that the investment level will be around three per cent of the its expected revenue matching the ambition with the group strategy for 2017.
The company represents a host of household brands that are readily available in the UK. The likes of Cravendale, Anchor, Lurpak and Lactofree all come under the Arla group umbrella.
The latter is the first lactose-free dairy drink made from cows' milk which is readily available in the UK. It was launched in 2006 and has grown into a range of three different types including chilled whole, long-life semi-skimmed and long-life whole.