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Arla Foods is investing €59.4 million to expand cream cheese production at its dairy facility in Holstebro, Denmark.

The move aims to meet rising global demand for cream cheese and strengthen the company’s position in key markets.

Arla said that the expansion will add 16,000 tonnes of annual cream cheese capacity to the site, which already produces 119,000 tonnes of cream cheese and 155,000 tonnes of butter and spreadable products each year.

The investment will include two new filling lines for retail and foodservice, as well as upgraded facilities for staff, including a new office building and changing rooms.

David Boulanger, EVP and chief supply chain officer at Arla Foods, said: “We have very strong positions in many markets in the cream cheese category, thanks to naturality and the uniqueness of our cream cheese products. As a result, we experience significant demand acceleration in this category in the various markets we operate. With this investment in Holstebro, we will be in a position to meet consumers’ appetite for our products and grow further the cream cheese category."

The expansion is expected to be operational by January 2028.