November 10, 2006

UK Arla enters the Finnish milk market

Arla Foods, the UK dairy giant has bought 30 per cent of the shares in the Finnish dairy company Ingman Foods and has signed an option for acquiring the remaining shares in the next three years.

The acquisition followed continuous efforts for internationalisation of the dairy industry, said managing director Åke Hammarstsröm, responsible for Arla's Nordic market.

The move would see new alliances to meet both the consumers' and the co-operative farmers' wishes for a broader range of products. It would also ensure a reliable sale of the milk, he commented.

Arla Foods' current company in Finland, Oy Arla Foods, plans to set up a joint venture with Ingman Foods, called Arla Ingman through the acquisition.

The option to buy the remaining shares in the Finnish company was intended to secure the running of the company, the workers' job commitment and the continuity in relation to the consumers, the retail trade and the milk suppliers.

The two companies complemented each other, said managing direktor Robert Ingman of Ingman Foods adding Arla was known for making long-term commitments. Ingman remains as top executive of the new company.