The investment would be shared among Arla’s 13 UK production, packing and distribution sites, and its logistics operation, it said this week (January 31).
It will include a £5M boost at the Taw Valley creamery in Devon, to increase capacity and improve quality. Stourton dairy, Leeds, will also receive £5M for a new packing facility to increase production, Arla said.
£3.5M injection
The Westbury site will receive £3M for maintenance and continuous production, while the milk processing site in Aylesbury will begin skimmed milk production, after a £3.5M injection, Arla revealed.
Arla Foods UK md Tomas Pietrangeli said: “Last year, I unveiled the most ambitious UK business strategy to date, to make Arla a household brand by 2020 and grow its revenue by nearly a third.
“This ambition is part of the company’s global strategy for growth and will position Arla as the champion of British dairy. By continually investing and improving our sites, we can ensure we grow capacity, maintain the high quality of our products and ultimately return the best possible price to our farmer owners.”
Arla’s UK investment was part of its global £285M investment plan, targeting its core markets – including Germany, Denmark and Sweden. The forecast investment was almost 50% more than last year’s £192M.
‘Relentless pursuit’
Arla ceo Peder Tuborgh said: “With these investments we continue our relentless pursuit to move more milk from bulk into brands and improve the profitability for our farmer-owners.
“You will see Arla take an even stronger position in the market, as the innovative farmer-owned dairy company, providing great-tasting, natural dairy products that help people make good food choices. That is the main focus of these investments.”
Meanwhile, in October, Arla wanted to move some of its butter operation from its Lockerbie factory to another site, meaning up to 22 jobs faced being axed.
Arla investment – at a glance
- £37.5M pledged to Arla UK sites for 2017
- Investment shared among 13 sites
- Part of Arla’s global £285M pledge