Construction of new milk powder plant has begun in China

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18 April 2007
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Arla Foods' joint venture company in China, Mengniu Arla, has begun the construction of a new milk powder plant, which will quadruple the company's production capacity. The factory will be commissioned in the summer of 2008.

The new milk powder plant is being built next to the current production plant in Hohhot.

"The new plant will be of a very high technological standard along the same lines as Arinco in Denmark and Vimmerby in Sweden. Our big challenge now is to keep to the timetable. Bearing in mind the extremely cold winters, the building itself must be completed before November," says Ulrik Sletten, Mengniu Arla's Production Director.

The factory is being built adjacent to the current plant outside Hohhot in Inner Mongolia. Construction costs total approximately USD 40 million and the new factory will quadruple the annual production capacity from 8,000 to 30,000 tons. Covering an area of 11,000 sq.m., the new factory is set to become China's largest and most advanced milk powder plant.

Simultaneously, Mengniu Arla are moving its Sales and Marketing Department as well as the central administration from Hohhot to Beijing. Thus, the company's administrative base will now be found in the Chinese capitol.


  • Mengniu Arla is a joint venture between Arla Foods and Mengniu, China's leading dairy company.
  • Mengniu Arla markets added value milk powder in retail packs.
  • The investment in the new factory follows the successful launch of Mengniu Arla in 2006.
  • Employees: 800 of whom 250 work in production.

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Arla Foods is an international dairy company owned by 9,700 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.

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Åse Andersson
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Carina Østergaard
Carina Østergaard Corporate Communication Manager Press contact for Arla Foods International +45 91 31 16 01 +45 89 38 10 00