Arla Foods has invested £179m to upgrade its Taw Valley Creamery in Devon in a bid to increase mozzarella production capacity and broaden its reach in export markets.
The changes will see new state-of-the-art technology installed at the site and will create up to 100 skilled jobs, The Grocer reported.
The move – which represents the dairy company’s largest-ever single-investment in the UK – comes as UK managing director Bas Padberg said that Arla wants to “become a major player within the global mozzarella market.”
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Arla said the upgrade would not have an effect on the creamery’s current cheesemaking operation, however could not disclose details of its overall production capacity.
A spokesperson told the publication: “The capacity at Taw Valley is based on milk supply available, and current and future demand in the market.
“The decision to invest in the UK means we can utilise the milk pool available – which means we can create new products that will add value to our farmers’ milk.”
Padberg added: “As one of the biggest food companies in the UK, it is only natural that we look for further opportunities to grow so we can continue to return a fair price back to our farmer owners.”
It comes as Arla Foods UK made a “strong recovery” in the second half of 2023, boosted by its strategic branded volume growth as inflation continues to ease.
The dairy products group made a net profit of £325m in the period, while Arla Foods UK sales rose 2.4% to £2.6bn.
