Arla Foods to establish global innovation centre in Denmark

Arla Foods, a Swedish-Danish dairy co-operative, is set to establish a new global innovation centre in Aarhus, Denmark, with an investment of DKK270m.

The investment is a part of the co-operative’s strategy to become one of the leading dairy innovators in the world.

The 10,000m² facility will bring together Arla’s innovation resources under a single roof and become part of the Danish Food Cluster.

Work on the project is scheduled to commence in mid-2014, and be completed by the third quarter of 2016.

Claimed to be compliant with 2020 energy standards in Denmark, the centre will feature open space and project rooms for seamless collaborations.

It will employ 120 people, of which 65 will be transferred from the company’s existing centre in Aarhus.

Arla senior vice-president and strategic innovation head Paul Cornillon said that various locations across Europe have been analysed before an ultimate decision to base the center in Aarhus.

"The facility will be placed close to the many global functions that are based in Arla Foods headquarters, and we also see many opportunities to enter into partnerships and sharing knowledge with existing and future organisations in the Danish Food Cluster, which will strengthen Arla Foods’ innovation culture, reputation and performance," Cornillon said.

Arla Foods executive vice-president and Global Categories and Operations head Jais Valeur said innovation of the highest international standards plays a key role in Arla’s efforts to reach the targets in its Strategy 2017.

"We want 10% of our annual revenue to come from new product launches. That is an essential part of our growth ambitions and our mission to create the highest possible value for the milk supplied by our cooperative owners," Valeur said.

In line with its Strategy 2017, Arla plans to shut two dairies in Sweden and make investments in existing dairies, resulting in an efficient and modern dairy structure, with reduced environmental and climate impact.

Production at Visby dairy will be streamlined, while the Gothenburg and Skövde dairies will be closed by the end of 2014 and 2015, respectively.

Plans also include investing about SEK150m – 200m in the Falkenberg dairy facility, which is expected to open by the end of 2014, and SEK100m in Jönköping and Stockholm dairies.

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Image: The investment is a part of Arla Foods’ strategy to become one of the leading dairy innovators in the world. Photo courtesy of Arla Foods / Creative Commons Attribution.