24/11/2025

Arla invests DKK 300 million in the Videbæk dairy

Arla Foods Ingredients is converting a spray-drying tower at the ARINCO dairy for ingredient production and installing heat-recovery technology that will save 900 tonnes of CO₂ annually.

Arla Foods Ingredients is investing just under DKK 300 million to convert an existing spray-drying tower at the ARINCO dairy in Videbæk. The tower will shift from producing infant formula to producing ingredients, Arla writes in a press release.

The investment follows the decision made in August 2024 to refocus the entire dairy exclusively on ingredient production.

  • This investment is strategically important for both Arla Foods and Arla Foods Ingredients. It supports our growth plans and enables the commercialisation of more highly refined products, says Luis Cubel, Managing Director of Arla Foods Ingredients.

Heat recovery reduces CO₂ footprint

The project also includes the installation of a heat-recovery system that reuses surplus heat from exhaust air to warm intake air, significantly reducing the need for steam heating.

The initiative will cut natural gas consumption by around 4,441 MWh per year — equivalent to a reduction of just under five per cent of ARINCO’s total natural gas use. This corresponds to an annual reduction of approximately 900 tonnes of Arla’s CO₂ emissions.

The technical conversion will begin in July 2026, with the first test productions expected in January 2027.

Luis Cubel attributes the investment to growing market demand:

  • We are seeing strong and sustained demand for our ingredients, and with this investment we are ensuring that we have sufficient capacity for the future.

By Maja Løvstrup
Photo: Arla Foods amba

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