Arla also intends to increase efficiencies within production while also reducing its environmental impact.
Arla’s board of directors has approved the group’s investment plan for 2013. The plan includes investments totalling over DKK 2bn, for capacity expansion, rationalisation measures, environmental improvements, maintenance, quality and innovation.
The 2013 investment level is approximately 3% of expected revenue, and is also an ambition within Arla’s Group strategy for 2017 (compared with approximately 3.4% in 2012). The objective is to contribute to the increased profitability of Arla’s activities, and therefore improve long-term earnings for Arla’s owners.
Vice CEO Povl Krogsgaard, said: “In relative terms, this year’s investment plan is a smaller share of our expected revenue than last year’s investment plan.
“This year, the largest proportion of our investments will be devoted to expanding the production capabilities of a number of our dairies which manufacture products for export to the growth markets outside the EU.
“Our ability to improve profitability for Arla’s owners is dependent upon us increasing sales of quality products all over the world, which is why, during 2013, we are investing in new production and expanding existing facilities.”
Source: Arla
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