Dairy giant Arla Foods has committed to invest further capex in its UK manufacturing sites in 2024.
On the day of the UK Farm to Fork Summit (13 May) convened by the UK government to discuss the country’s food security, the Lurpak owner said it had lined up “tens of millions” of pounds of investment in its local factories.
Arla said the spending would take the company’s total investment in the UK in 2024 to more than £300m ($377m).
The co-op plans to invest in its dairies and creameries at Lockerbie, Stourton, Aylesbury and Westbury.
The business’ Stourton facility will get £65m to increase its capacity for extended shelf-life milk and producing milk in cartons.
At the Aylesbury site, Arla will invest in additional automated box packing capabilities, allowing the company to offer a variety of packaging formats.
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By GlobalData
Bas Padberg, managing director of Arla Foods UK said: “What this means is that our farmer owners are investing in UK food security – as they are not only producing our milk, but they are backing this investment in our production sites.”
He added: “We must also ensure we have a robust food supply chain for the UK market – and this starts with ensuring we can continue to return a fair price back to our farmer owners.”
In March, the business announced plans to expand the production of mozzarella in its Taw Valley site.
The Taw Valley creamery will receive €210m ($227.6m) to produce mozzarella that can be used for the likes of pizza toppings around the world.
The dairy cooperative claimed at the time it was the “largest ever investment into the UK”.
In January, Arla announced it was looking for a buyer for a cheese-making facility in the UK.
The company put its Melton Mowbray creamery, known locally as Tuxford and Tebbutt, up for sale.
The plant in Leicestershire in England’s East Midlands employs around 60 people, the company said in a statement.
