Arla is investing €12 million (US$13.09 million) to upgrade its AKAFA site in Northern Denmark.
The upgrade will allow Arla to add infant milk formula (IMF) production to its existing powdered milk capacity.
The investment will not require an expansion of the site, but consists of an upgrade of relevant sections of the site.
Arla sells IMF products under its own brands like Arla Baby & Me and Milex and is also a preferred supplier to a number of third party brands. The biggest markets for Arla within the IMF category is China and Southeast Asia, Latin America and Europe.
“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,” says group VP Henrik Andersen, who is head of Arla Foods Ingredients and responsible for Arla’s third party manufacturing business.
“By upgrading AKAFA to include IMF production, Arla will be able to meet the growing demand with high-quality production.
The new IMF production at AKAFA is expected to start in August 2018, and will create two to four new jobs.
