Arla Foods' DKK 300 Million Investment to Enhance Danish Facility

Arla Foods has announced a significant investment of approximately DKK 300 million (around $46.4 million) for the enhancement of its Arinco dairy facility in Videbæk, Denmark. This investment is aimed at retrofitting a spray-drying tower to bolster its capacity for ingredient production while reducing environmental impact.

In August 2024, Arla decided to shift the Videbæk facility's focus exclusively towards ingredient manufacturing, moving away from Early Life Nutrition products. This transition aligns with Arla's strategy to meet the growing global demand for specialized dairy ingredients, especially in health-focused markets.

The upgrade to the spray-drying tower will not only enhance production capabilities but also incorporate a heat recovery system to improve energy efficiency. The system will recover waste heat from exhaust air to preheat intake air, reducing the facility's reliance on steam heating. This is expected to decrease natural gas consumption by approximately 4,441 MWh annually, reducing the facility's overall gas usage by nearly 5% and CO₂ emissions by around 900 tons per year.

The technical rebuild of the spray-drying tower is scheduled to begin in July 2026, with initial test productions planned for January 2027. Luis Cubel, managing director of Arla Foods Ingredients, emphasized the strategic importance of this investment for future growth and capacity assurance.

Arla's investment underscores its commitment to sustainability and meeting the demand for refined dairy ingredients, a sector witnessing strong and sustained demand.