Dairy company Arla Foods is to invest around DKK75m (US$15m) in Hollandtown Dairy, its US yellow cheese dairy in a bid to double production capacity.
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The Danish company plans to extend the Wisconsin-based dairy this year, to facilitate a brining facility and two packing lines. Parts of the dairy will also be upgraded to improve production flow and raise capacity from 8,000 to 10,000 tons.
“Over the past years, we’ve shown that we can grow the US business,” said Arla’s international director Tim Ørting Jørgensen. “For us to maintain our growth, we plan to channel further investments into the company.”
Further investments are planned to increase the dairy’s production capacity to 20,000 tons over the next five years.
“We need the initial investment to meet our customers’ demands,” added Andrew Simpson, head of Arla Foods US. “The combination of local production and imports has proved successful, and the fact that we can offer both means that customers are taking us seriously.”
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By GlobalDataArla Foods has run licenced production at Hollandtown since 1997. The group bought the plant in early 2006 when the dairy was threatened with closure. Last year, sales of yellow cheese from Hollandtown increased by 19%.
