Joint venture to start operations in 2012.
DMK (future merger of NORDMILCH and Humana) and Arla Foods will establish a 50/50 pct. joint venture to start a whey processing partnership for the global food manufacturing industry. The name of the new joint venture will be ArNoCo GmbH & Co. KG, and the two partners will invest a total of 44 million Euros, of which 35 million Euro will be used to build a whey processing plant at DMK’s cheese plant at Nordhackstedt in Northern Germany (and nine million Euro will be spent at Arla Foods’ plant Danmark Protein in Nr. Vium, Denmark).
The joint venture will buy whey from DMK estimated at more than 700,000 tonnes annually and convert it into whey protein concentrate and lactose at the new plant. The Whey Protein Concentrate will then be dried at Arla Foods’ plant Danmark Protein. DMK will supply all related services on behalf of ArNoCo. Arla Foods Ingredients will market, sell and distribute the products to the global food manufacturing industry.
The building of the new plant is expected to start in October 2011. The plant is scheduled to be in operation by the end of 2012 creating approx. 24 jobs. ArNoCO GmbH & Co. KG will be headed by managing directors Finn Simonsen from Arla Foods Ingredients and B. v. Borstel from DMK.
Dr. Josef Schwaiger, future CEO of DMK, explains the move:
“Expanding the ingredients business is one of DMK’s strategic growth areas. Its alliance with Arla in ArNoCo is therefore an important step towards higher value added and will strengthen the Nordhackstedt location’s position for the long term.”
“We have identified the whey business as an important part of Arla Foods’ 2015 strategy and we are set to double the turnover of our whey business. This is an important step forward in achieving that goal,” says Peder Tuborgh, CEO, Arla Foods.
Arla Foods is a leader in the global market for whey protein and has other whey partnerships in Argentina, Germany, France, Norway and Sweden.
The joint venture is subject to approval by the competent Competition Authorities.
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