Construction of Arla Foods' new milk powder factory in Vimmerby, Sweden, began yesterday after months of delay. According to the original timetable, work on the factory should have begun in April.
However, Vimmerby Energi, which in accordance with Arla Foods' agreement with Vimmerby local council should have supplied power to the factory, pulled out.
The problem has now been solved by Arla Foods installing its own bioenergy plant which means that the factory will be supplied with inexpensive and environmental-friendly energy as the fuel will come from forests in the vicinity.
"Negotiations with Vimmerby Energi caused the delay to the start of construction," said project manager Per Mogren Christiansen.
"But by combining the two first stages of construction, we've gained time and are now 10 weeks ahead of schedule."
The factory will have a capacity for 380 million kg of milk per year, representing about one fifth of Arla Foods' milk volume in Sweden. In addition, the plant will produce 44,000 tons milk powder.
The construction of the new milk powder factory is part of Arla Foods' structural and strategy plan from 2001.