Arla Foods and DMK Group open new joint venture production facility

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Arla Foods and DMK Group open new joint venture production facility
22 April 2015
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The joint venture between Arla Foods and the DMK Group – called ArNoCo GmbH & Co. KG – entered a new stage today as the two companies opened a brand new production facility at DMK’s Nordhackstedt site in Northern Germany. The new ArNoCo site will process the whey produced from DMK’s cheese production and supply high-quality whey protein concentrate and lactose to Arla’s global ingredients business.

The joint venture ArNoCo was established in 2011, and the following year construction began on a new production facility. In late 2014, the company began its first test production at the state-of-the-art whey processing facility, and since the end of February 2015 ArNoCo has been able to use the full capacity of the production facilities. With around 40 employees, the site processes around 700,000 tons of whey, which is made into 25,000 tons of lactose and 12,000 tons of whey protein concentrate per year.

During the official opening of the facility today, guests were able to see for themselves the modern technology deployed in the new site as the visitors were allowed a glimpse of manufacturing procedures during a tour of the facility. They also learned about the effort involved in manufacturing products which live up to the strict requirements for baby food.

Promising joint venture

With the production of whey protein concentrate, ArNoCo forms an interface between Arla Foods and the DKM Group, which own equal shares in the joint venture.

“The international ingredients business is one of our strategic growth areas. The production facility at the Nordhackstedt site is in a logistically ideal location for processing the whey obtained from the neighbouring DMK factory. Through our subsidiary joint venture, we can exploit the synergies between Arla Foods and the DMK Group to optimum effect,” says Dr. Josef Schwaiger, spokesman for the Executive Board of the DMK GROUP.

Peder Tuborgh, CEO of Arla Foods, who also attended the opening, is pleased with the new possibilities that the ArNoCo joint venture production brings.

“With our mutual investments in ArNoCo, DMK and Arla Foods can build very successfully on our strengths and experience. This new joint venture will enhance Arla Foods Ingredients’ position as one of the world’s leading suppliers of the highest quality whey protein and lactose ingredients. The market for these products is growing fast, so we are pleased to get started on this new production,” he says.

The ArNoCo management team is made up of representatives from Arla Foods and the DMK Group. The DMK Group delivers the raw material along with processing expertise and is responsible for the production’s energy supply, IT and administration. Arla Foods refines the whey protein concentrate produced by ArNoCo into whey protein powder and derivatives used in many different areas of application – from food to fitness products and products for professional athletes.

About ArNoCo

ArNoCo GmbH & Co. KG is a joint venture of the dairy cooperative DMK Group and Arla Foods. Their strategic collaboration began with a project in the year 2011. At the Nordhackstedt location, ArNoCo employs 40 staff and processes 700,000 tons of sweet (unfermented) whey into around 12,000 tons of whey protein concentrate and 25,000 tons of lactose annually for the international food industry.

About Arla Foods

Arla Foods is a global dairy company as well as a cooperative owned by around 13,500 milk farmers from Sweden, Denmark, Germany, Great Britain, Belgium, Luxembourg and the Netherlands. Arla’s products are distributed under well-known brand names such as Arla®, Lurpak® and Castello® in more that 100 countries around the world. Arla has production sites in twelve countries and distribution branches in 35 countries. It is also the world’s largest manufacturer of dairy products of organic quality. Germany is one of the company’s six core markets. Following the merger with Milch-Union Hocheifel eG in 2012, Arla Foods became the third largest dairy company in Germany.

About the DMK GROUP

DMK Deutsches Milchkontor is Germany's largest dairy company. DMK is supported by over 9,000 active milk producers and around 7,200 employees. Today, DMK processes 6.7 billion kilograms of milk at 17 dairy plant locations. Another eight locations are available for the production of baby food, ice cream and health products. With brands like MILRAM, Ravensberger, Osterland, Oldenburger, Humana, Intact, Leben’s, Biolabor, hansal and NORMI, DMK is an established entity for trade and consumers in Germany as well as around 100 other countries in the world. With a turnover of 5.3 billion euros, the company is one of Europe’s leading dairy industry enterprises.

Arla Foods is an international dairy company owned by more than 8,400 farmers from Denmark, Sweden, the UK, Germany, Belgium, Luxembourg and the Netherlands. Arla Foods is one of the leading players in the international dairy arena with well-known brands like Arla®, Lurpak®, Puck® and Castello®. Arla Foods is focused on providing good dairy nourishment from sustainable farming and operations and is also the world's largest manufacturer of organic dairy products.

Press contact

Arla Group Press Office
Arla Group Press Office (journalists/media only) +4591310310