Dairy company Arla Foods has announced that it has plans to build a DKr1m (US$113.6m) high-technology plant in Denmark early in 2002, the final decision on which will be made by the firm's management in September or October this year. The Danish-Swedish group revealed that the new plant would focus on the production of sugar extracted from milk, to create a product called tagatose that will be suitable for diabetics. Tagatose can be used as normal sugar but has 3 times fewer calories. It was recognised as GRAS (generally recognised as safe) in mid-April by US authorities.