Food and Beverage Business
Finance

Arla to Increase Production Capacity in Finland

Arla to Increase Production Capacity in Finland Arla Foods Food and Beverage Business

Arla Foods is expanding its production capacity and strengthening its position in the Finnish market by acquiring full ownership of a Finnish dairy building. The Danish dairy giant has increased its shareholding in Massby Facility and Service, a property management company that serviced a dairy in Sipoo, near Helsinki, from 60% to 100%. This move has enabled Arla to take over the production and office premises previously used by Unilever, which has facilitated the expansion of production at the Sipoo dairy. Operations at the dairy were previously split between Arla and Unilever before the latter relocated its Finnish operations last year.

Arla’s expansion in Sipoo supports the company’s growth and strengthens its position in the Finnish market, aligning with the company’s Future26 strategy aimed at growth. The Sipoo factory will also gain a new snack production line this year as part of an €11m ($12m) investment, enabling Arla to offer Finns a wider range of domestic brands than before. The factory can milk and make cheese, yogurt, curd, cream, sour cream, creme fraiche, and dairy butter. Additionally, approximately 400 employees are stationed there.

Arla’s CEO Pia Jormanainen expressed the company’s commitment to investing in domestic products, maintaining the need for milk produced in Finland at Arla and supporting the well-being of consumers. Arla’s snack products, made with milk, support well-being excellently thanks to the versatile nutritional properties of milk.

In 2022, Arla’s revenue in Finland reached €337m, comprising 2% of the group’s total revenue of €13.8bn. This growth reflects the company’s strong presence and performance in the Finnish market.

Furthermore, Arla announced last October that it was investing in an existing factory in Argentina for proteins and infant-formula applications. Arla Foods Ingredients planned to add a new drying tower to the site in the city of Porteña in a significant upgrade.

This expansion not only supports Arla’s growth but also responds to the growing need for healthy snacks and high-quality dairy products in the food and beverage industry. As a leading player in the food and beverage sector, Arla’s investment in Finland and Argentina demonstrates the company’s commitment to staying ahead of food and drink consumer trends and remaining competitive in the food and drink business.

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