Arla Foods' board of directors has approved of the group's investment budget for the coming year. A figure of DK1.6 billion (€215m) has been agreed. This means that the investment levels from the preceding financial year will be maintained.
The investment budget falls into three roughly equal parts. The production division accounts for DK546 million, the largest portion.
Of this, projects under the structural plan total DK220 million for, primarily, blue cheese production at Høgelund Dairy which will see capacity increase by 6,000 tons to 15,000 tons.
The ingredients division accounts for approximately DK500 million, mainly for the new milk powder factory at Vimmerby in Sweden. Construction has commenced and is expected to be completed in November 2004.
The Denmark and Sweden divisions and other parts of Arla Foods' organisation, make up the remaining third of the budget. Investment for the Denmark Division will be DK204 million while DK230 million will be invested in Sweden.
A new filling line for soups and sauces will be installed at Esbjerg Dairy and UHT production will be expanded at a total cost of DK32 million. The Sweden Division's largest single project is the ongoing expansion and automatisation of the cold store at Jönköping at approximately DK42 million.