Strategic collaboration with French Sodiaal implies that baby products (Early Life Nutrition) will be produced in France. Arla Foods Ingredients’ production at ARINCO in Videbæk will instead focus on other ingredients products.

In order to unlock new opportunities for a growing ingredients business, Arla Foods Ingredients has decided to change the strategic role of ARINCO in Videbæk (photo) by making investments to transform and dedicate the facilities to focus solely on ingredients production. Today – in addition to ingredients – ARINCO produces milk powder for AFI’s B2B sales of Early Life Nutrition (ELN) and Arla Foods’ branded ELN business. This information is provided by Arla Foods in a press release.

The decision has thus been made that AFI’s B2B business of ELN will cease in approximately 19 months, whereas Arla Foods will continue to work to develop the branded ELN business. Therefore, Arla Foods has entered into a partnership with the French cooperative, Sodiaal, which has extensive experience in ELN production. Arla Foods and Sodiaal will work closely together to develop both companies’ ELN business in China, as Sodiaal will produce all of Arla Foods’ ELN products for China as well as other Arla Foods markets.

The new strategic direction will make capacity available at ARINCO for Arla Foods’ growing ingredients production. But it will also have an impact on around 170 positions at ARINCO and Arla Foods Ingredients’ headquarters in Aarhus, Luis Cubel, Group Vice President and Managing Director at Arla Foods Ingredients, states in the press release:

– It goes without saying that this is a difficult situation and a tough day for our employees. The changes will not be fully implemented until 19 months from now, and until then we will do everything we can to retrain, upskill, and find internal job opportunities for those impacted. Our employees are skilled, and it is our clear ambition to retain as many of them as possible in Arla Foods. However, redundancies will be inevitable, the press release reads.

Read the full press release HERE

Photo: Arla Foods