Arla, DMK Form Whey Processing Partnership

VIBY J, DenmarkArla Foods announced it intends to enter into a 50/50 whey processing partnership with DMK. Subject to approval by ECN Competition Authorities, the new venture will be called ArNoCo GmbH & Co. KG.

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.

The companies intend to invest 44 million Euros, 35 million of which will be used to build a whey processing plant at DMKs cheese plant at Nordhackstedt in Northern Germany. 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 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.
Construction of the new whey processing plant is expected to begin in October 2011, and the plant is scheduled to be operational by the end of 2012.