Arla’s investment to strengthen IMF production in Denmark
International dairy company Arla Foods is planning to invest €12m to upgrade its AKAFA site in Northern Denmark, in order to enhance its infant milk formula (IMF) production.
The investment would enable the company to add IMF production to its existing powdered milk capacity.
The company added that this investment will be used to upgrade certain sections of the plant to enable the production of high-quality IMF.
Apart from delivering IMF products under its own brands such as Arla Baby & Me and Milex, Arla is also a preferred supplier to a number of third-party brands.
Arla has been exporting its IMF products to China and Southeast Asia, Latin America and Europe.
Arla Group vice-president Henrik Andersen said: “We are seeing double-digit growth in our global IMF sales, and we expect the growth to continue in the coming years due to rising demand in the category worldwide.
“By upgrading AKAFA to include IMF production, Arla will be able to meet the growing demand with high-quality production.
“Having a strong capacity with the highest quality is essential in a category like IMF, where quality is the key differentiator in the market.”
The production at the AKAFA facility is expected to begin by next August.
Image: Arla Foods to invest €12m at AKAFA site for IMF production. Photo: courtesy of Arla Foods.