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FoodBev Media
26 April 2008
Arla Foods to invest in Argentina
Arla Foods is increasing its investment in Argentina. Last year, the Board of Directors decided to invest US$20 million in the expansion of the factory in Porteña. This will now be increased by an additional $10 million to finance a new production of ingredients for ice-cream and cheese.
The Board has agreed to increase the investment in Argentina from the initial $20 million to $30 million. This not only takes account of added costs for machinery, buildings and equipment for ice-cream and cheese ingredients, but also reflects rising steel prices and the low dollar rate.
The factory in Argentina produces added value whey protein powder sold as ingredients to the dairy and bakery industries. Current production, however, only utilises 30% of the raw material. The rest will be used for less profitable permeate for animal feed.
The investment in a new spray tower will provide for the appropriate technology to produce high-quality whey permeate powder and strengthen earnings from the already profitable Argentinean business.