The €50M (£32.8M) facility is operated by ArNoCo, an organisation set up by the two firms. It will turn whey by-product from a nearby cheese factory into whey protein concentrate for the bakery, nutrition and dairy sectors worldwide.
In addition, the plant, which is located in Nordhackstedt in Germany is expected to produce 25,000t of dry blend lactose for use in infant formula products.
“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,” said Hans Jørgen Lauridsen, ArNoCo’s project director.
‘Significant development’
“The market for these products is growing faster than the ingredients industry can supply them, so the establishment of ArNoCo in co-operation with DMK is a significant development.”
Following a test production phase in July, the ArNoCo factory was now running at 80% capacity and was on track to be at full capacity in September, the company claimed.