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Arla and DMK form JV
26 March 2011: Arla Foods is planning to establish a whey processing JV with the merged Nordmilch-Humana company DMK to produce whey protein concentrate (WPC) and lactose for the food industry.
DMK is the company that will be born out of the merger between dairy giants Nordmilch and Humana, announced in July 2010. The 50-50 JV this new company will form with Arla will be called ArNoCo.
DMK and Arla are investing a total of Euro 44 million (approx Rs 277.2 crore) in the joint venture, of which Euro 35 million (approx Rs 220.5 crore) will be used to build a new whey processing plant at DMK’s cheese plant in Northern Germany and Euro 9 million (approx Rs 56.7 crore) will be spent on upgrades at the Danmark Protein plant. The JV is subject to competition approval, but the plan is to start building the new processing plant in October 2011, for completion by December 2012.
ArNoCo will purchase over 700,000 tonne of whey – a by-product – from DMK each year, which it will transform into WPC and lactose. The WPC will then be dried at Arla’s plant Danmark Protein, and Arla Food Ingredients will then market, distribute and sell the ingredients.
Source: Foodmanufacture