The Denmark-based co-op is embarking on a DKK50m (US$8.2m) programme at its site in the central Danish town of Troldhede. The project will see Arla build two ripening warehouses, install new equipment and set up a new drainage room.
Arla said the “redevelopment” of the facility is expected to be completed by the middle of 2023.
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By GlobalDataCustomers in Japan would receive cheeses that “look even fresher and softer when they are unpacked”, Arla said in a statement.
“[The investment] offers completely new opportunities in the production of long-lasting cheese,” Torben Pradsgaard, the director of the dairy, added.
The factory employs 140 staff and Pradsgaard said Arla expects to maintain that number of employees at the site.
Morten Rønberg, category director for cheese at Arla, added: “The Japanese have a billion-euro market for cheese, which is probably surprising to many, but they have a high standard of living and want to pay a good price for a good product.
At the same time, they are trendsetters for south-east Asia. Therefore, we hope that the enthusiasm for the cheeses will increase and that we will be able to sell even more in a few years.”
Cheese made at the Troldhede factory is exported to more than 100 countries. Its main markets are Japan, Australia, the UK and the Nordic countries.