VIBY, Denmark—Arla Foods Ingredients and German dairy co-operative Deutsches Milchkontor (DMK) have begun production at a new whey and lactose production facility.  

The factory cost more than EU$50 million and is operated by ArNoCo, an organization created by the two companies. It’s located near the Danish border and is next to a cheese factory owned by DMK.

ArNoCo will use whey by-products from the cheese-making operations to produce whey protein concentrate ready to be used by the bakery, dairy and nutrition sectors. It will also produce 25,000 tons of lactose annually that will be processed and sold by Arla.

After a production test in July, the factory is running at 80 percent capacity. It is expected to be at full capacity in September.

Last year, Arla Food launched its Nutrilac protein solution that allowed yogurt manufacturers to produce Green-style yogurts on their existing plants with reduced weight levels.