FrieslandCampina Member Council approves investment of 245 million euros to expand Borculo and Leeuwarden

29 August 2013

The Member Council of FrieslandCampina has approved the construction of a new plant for infant and toddler nutrition and ingredients in Borculo, as well as the replacement and expansion of the processing capacity for evaporated milk products in Leeuwarden. The plans, which were previously announced, require an investment of 135 million euros in Borculo and 110 million euros in Leeuwarden. These amounts are in addition to the total of 200 million euros in investments FrieslandCampina committed to in the first half of 2013. With these expansion plans, FrieslandCampina is not only contributing to regional employment, but also to a further strengthening of the Netherlands’ export position in dairy products.

The aim is to build a new plant in Borculo next to the existing site, complete with a spray-drying tower for the production of infant and toddler nutrition and ingredients.
By replacing and expanding its processing capacity in Leeuwarden, FrieslandCampina is responding to the growing demand for evaporated milk products in Africa, the Middle East and Asia. The construction process will make use of technical and sustainable innovations, such as evaporators capable of reusing heat multiple times. This will ensure considerable energy cost savings.  

Investments in first half of 2013
The above-described investments are in addition to the total of 200 million euros in investments FrieslandCampina committed to in the first half of 2013. The most important projects covered by those funds include the expansion of the production capacity for infant and toddler nutrition at FrieslandCampina Domo in Borculo (40 million euros), the improvement of the production location in Samrong, Thailand (13 million euros) and the expansion of the production capacity of FrieslandCampina Butter in Den Bosch (7 million euros). The remaining investments involve renovations and expansions of several production locations. All these plans are to be realised over the coming years.

Expansions first half 2013
A number of expansion projects were completed in the first half of this year. These included doubling the cheese production capacity at FrieslandCampina Cheese in Workum to 120,000 tonnes per year. In addition, the production location adjacent to FrieslandCampina Domo was expanded to enable processing of whey, a by-product of cheese production.
A new sustainable installation was added, which concentrates whey into powder, an important ingredient for infant and toddler nutrition, among other applications. And July 2013 saw completion of the FrieslandCampina Innovation Centre in Wageningen, which includes research facilities, laboratories, a pilot plant and offices. The Innovation Centre will be officially opened in October 2013.

route2020 strategy
The expansions are part of FrieslandCampina’s route2020 growth strategy. The aim of the investments is to enable FrieslandCampina to profit from the increasing demand for products with added-value and to have the capacity to process the expected increased quantity of milk supplied by member dairy farmers due to the termination of
the EU milk quota in 2015. Last year, FrieslandCampina invested a total of 423 million euros to expand its processing capacity.

Efficient and sustainable
FrieslandCampina is working towards efficient and sustainable production chains, from sustainable dairy farming and the purchase of sustainable raw materials through to reduced energy and water consumption and waste water discharge. The company is committed to climate-neutral growth.