The global ingredient manufacturer Chr. Hansen celebrates the conclusion of a large construction project, which has resulted in new laboratories, offices, and a significant expansion of its existing dairy culture factory in Arpajon, France. The factory now has double the production capacity of the original plant. The construction budget was 120 million DKK (20 million USD).
Milwaukee, Wisconsin – “In spite of rising competition, Chr. Hansen continues to play a key role in the majority of dairy products,” says Lars Frederiksen, CEO and President at Chr. Hansen. “From a marketing point of view, we have moved ahead of the competition over the past couple of years, and we intend to do everything to keep that position.”
Chr. Hansen produces cultures at its factories in Denmark, the USA, Germany, and France. It is at the existing site in Arpajon, located approximately an hour’s drive from Paris, by the Orge River, that Chr. Hansen has built new laboratories and offices, and significantly expanded the existing dairy culture factory. On September 1, 2005, the inauguration of what is now the world’s largest factory of its kind was celebrated.
“The new factory is state-of-the-art,” explains Frederiksen. “We have taken all the best characteristics from our existing factories and made this one better, larger, and more automated.”
The new factory operates at double the capacity of the initial plant. Frederiksen notes that the reason for expanding the factory in Arpajon is consistent with Chr. Hansen’s on-going goal of being close to its clients.
“We have a large client base in France, and there is room for yet another fermentor at the factory,” Frederiksen states.
Demand for dairy cultures increasing
In Arpajon, Chr. Hansen manufactures approximately 200 different lactic acid cultures. In particular, cultures produced for use in dairy products have been the fastest growing market within food ingredients over the past couple of years. Chr. Hansen boasts 40 percent of the revenues in this market.
Chr. Hansen, headquartered in Hørsholm, Denmark, produces functional ingredients for the food industries. While the increase in demand for food ingredients is currently a modest two percent, the demand for cultures has been rising at nearly double that rate.
“We built the extension of our factory in response to the rapid growth in sales of dairy cultures, and to meet the concurrent market demands,” says Frederiksen.
Knud Vindfeldt, Vice President of Marketing for cultures adds, “What we are experiencing right now is the result of our strategic and goal-oriented efforts that we have made in the food industry over the past five to ten years. It is innovation, ambition, and hard work that have driven us to where we are today, not simply a single key product or positive growth within a specific segment. The growth we are witnessing now is widely spread across many countries, segments and industries, and we have only seen the tip of the iceberg.”
Chr. Hansen is the world’s leading supplier of dairy cultures, and each quarter, the company enjoys greater growth than the rest of the culture market. Over the last couple of years, the company has made substantial investments to expand its culture production, and thus meet the growth goals of the company’s sales strategy, distancing itself even further from its competitors.
Operating from facilities in thirty countries worldwide, Chr. Hansen is a global biotechnology company that provides ingredients to the food, dairy, human health and nutrition, and animal health industries. Based on intensive research, Chr. Hansen works to improve the quality of food and health for people all over the world. The company is a primary supplier of cultures, probiotics, enzymes, colors, flavors, seasonings, sweeteners, and tablet coatings and excipients, which are applied in foods and beverages, pharmaceuticals, dietary supplements, and agricultural products. For more information, visit www.chr-hansen.com.
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