FINLAND – Danish dairy giant Arla Foods is set to enhance its production capacity at a Finnish dairy in Sipoo, near Helsinki, following the full acquisition of the property.

Arla has increased its shareholding in Massby Facility and Service, a property management company servicing the Sipoo dairy, from 60% to 100%.

Previously, operations at the Sipoo dairy were shared between Arla and Unilever.

However, with Unilever relocating its Finnish operations last year, Arla has now taken over the production and office premises previously utilized by Unilever, enabling an expansion of production at the facility.

“Investments in Sipoo support the growth of our company’s business and strengthen our position in the Finnish market,” Pia Jormanainen, CEO of Arla’s Finnish subsidiary stated.

“In the future, we will be able to offer Finns a wider range of domestic brands than before. Investments are an important part of our company’s Future26 strategy aimed at growth.”

As part of the expansion plans, the Sipoo factory will receive a new snack production line and a substation, representing an €11 million (US$12 million) investment.

This investment aligns with the growing demand for healthy snacks, and Arla aims to support well-being with its versatile milk-based snack products.

The Sipoo dairy, which cans milk and produces various dairy products including cheese, yogurt, curd, cream, sour cream, creme fraiche, and dairy butter, currently employs around 400 people.

The expansion is expected to create additional opportunities for Finnish milk producers.

 “Our investment is also positive news for our Finnish milk producers. We invest in domestic products, which maintains the need for milk produced in Finland at Arla,” Jormanainen stated, highlighting the positive impact of the investment on Finnish milk producers.

In 2022, Arla’s revenue in Finland reached €337 million, contributing 2% to the group’s total revenue of €13.8 billion in the same year.

This move follows Arla Foods’ previous investments, including an upgrade to a factory in Argentina for proteins and infant-formula applications.

The acquisition and expansion in Finland align with Arla’s broader growth strategy, reinforcing its commitment to offering a diverse range of high-quality dairy products in the Finnish market.