Production began this summer at a new whey and lactose production facility that is a joint venture between Denmark’s Arla Foods Ingredients and German dairy co-operative Deutsches Milchkontor. The factory, which cost more than €50 million ($66.8 million) to build, is operated by ArNoCo, an organization created by the two companies.

Located in Nordhackstedt, Germany, the new facility is adjacent to an existing 60,000 metric-ton-a-year (about 66,138 tons) cheese factory owned by DMK. This site produces mozzarella and semi-hard cheeses such as Gouda.

 ArNoCo will use the whey by-product from DMK’s cheese-making operations to produce whey protein concentrate ready to be converted into value-added ingredients for the bakery, dairy and nutrition sectors.  The new site will also produce 25,000 metric tons (27,557 tons) of lactose annually, which will be processed and sold as Arla Foods Ingredients’ premium quality Dry Blend lactose for infant formula.