Arla Foods plans to increase its production capacity after fully acquiring the building of a dairy factory in Finland.
The Danish dairy giant has increased its stake in Masby Facilities and Services, a property management company that provided dairy services in Sippo near Helsinki, from 60% to 100%.
Sipaw Dairy’s operations were previously split between Arla and Unilever, but Unilever relocated its operations in Finland last year.
Second, the acquisition allows Arla to expand production by taking over production and office facilities previously occupied by Unilever within the dairy building.
Masby Facilities and Services employees will continue in their roles.
Pia Jormainainen, CEO of Arla’s Finnish subsidiary, said: The investment in Sipoo will support the growth of our business and strengthen our position in the Finnish market.
Access the most comprehensive company profiles on the market with GlobalData. Save research time. Increase competitiveness.
Company Profile – Free Sample
You will receive a download email shortly
We are confident in the unique quality of our company profile. However, we want you to make the decision that is most beneficial for your business, so we are offering free samples that you can download by submitting the form below.
by global data
“In the future, we will be able to offer Finns a wider range of national brands than ever before. The investment is an important part of our Future26 strategy for growth.”
A new snack production line and electrical substation will also be built at the Hsipaw factory this year as part of an 11 million euro ($12 million) investment.
Sipoo dairy cans extract milk and produce cheese, yogurt, curd, cream, sour cream, heavy cream and dairy butter. Approximately 400 employees are permanently stationed here.
“The need for healthy snacks is increasing as people want to protect themselves and their families’ health. Arla’s snack products support health thanks to milk’s diverse nutritional properties.” says Jormainainen.
“Our investment is also good news for Finnish milk producers. We are investing in domestically produced products, thereby sustaining the need for milk produced in Aala, Finland.”
Arla’s revenue in Finland in 2022 amounted to 337 million euros, up from 309 million euros in the previous year, accounting for 2% of the group’s total 2022 revenues of 13.8 billion euros.
Last October, the Danish company announced it would invest in an existing plant in Argentina for protein and infant milk applications.
Arla Foods Ingredients was planning to add a new drying tower to its Porteña property in what it called a “significant upgrade,” without disclosing the investment amount.
