Arla Foods is set to increase its production capacity at a Finnish dairy after acquiring the building in full.

The Danish dairy giant has increased its shareholding in Massby Facility and Service, a property management company that serviced a dairy in Sipoo, near Helsinki, from 60% to 100%.

Operations at the Sipoo dairy were previously split between Arla and Unilever before the latter relocated its Finnish operations last year.

In turn, Arla has now taken over the production and office premises previously used by Unilever in the dairy building through this acquisition, which has enabled the expansion of production. 

Employees at Massby Facilities and Service will continue in their respective roles.

Pia Jormanainen, the CEO of Arla’s Finnish subsidiary, said: “We are happy to share investment news. Investments in Sipoo support the growth of our company’s business and strengthen our position in the Finnish market. 

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By GlobalData

“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.”

The Sipoo factory will also gain a new snack production line this year and a substation as part of an €11m ($12m) investment.

The Sipoo dairy cans milk and makes cheese, yogurt, curd, cream, sour cream, creme fraiche and dairy butter. Around 400 employees are stationed there.

“There is a growing need for healthy snacks because people want to take care of their own and their family’s well-being. Arla’s snack products support well-being excellently thanks to the versatile nutritional properties of milk,” said Jormanainen.

“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.”

In 2022, Arla’s revenue in Finland reached €337m from €309m the previous year, comprising 2% of the group’s total revenue of €13.8bn in 2022.

Last October, the Danish business announced that it was investing in an existing factory in Argentina for proteins and infant-formula applications.

Arla Foods Ingredients planned to add a new drying tower to the site in the city of Porteña in what the company describes as a “significant upgrade”, without disclosing the amount of capital to be invested.