Denmark-based dairy cooperative Arla Foods has committed about €300m ($353.46m) to build a new cheese plant at its existing production site in Götene, Sweden.
The facility is scheduled to begin operations in 2030.
The project will add capacity to Arla’s manufacturing network and relocate household cheese production from the cooperative’s Nr. Vium dairy in Denmark to Götene once the new plant is running.
Already one of Arla’s “largest” facilities with around 600 employees, the Götene site is projected to handle roughly one billion kilograms of milk per year following the expansion, about twice its current intake.
Arla Foods CEO Peder Tuborgh said: “Global demand for reliable, nutritious protein continues to grow, and dairy plays a vital role in healthy diets and resilient food systems.
“We are investing at scale to build modern, efficient capacity that serves consumers across our markets, strengthens food security and advances innovation. Götene will be a cornerstone in this network.”
According to Arla, the development will lift Sweden’s cheese production and raise the country’s self-sufficiency rate by around 10 percentage points, from approximately 37% to 47%.
The investment is also expected to generate new full-time jobs at the dairy as well as indirect roles across agricultural and supplier networks.
The cooperative said the €300m outlay represents the “largest” single investment recorded in Swedish food production and is aligned with Sweden’s national food strategy.
In 2025, Arla earmarked €731m for growth initiatives across its core markets.
Following the transfer of household cheese output to Sweden, the Nr. Vium facility in Denmark will concentrate on higher-demand products serving Arla’s International and Europe Zone markets.
The Götene expansion is intended to reinforce the plant’s position within Arla’s manufacturing footprint and strengthen Skaraborg’s standing as a key agricultural and food-producing region.
