Mecklenburg-Vorpommern Supports Arla's Upahl Location

23 Oct 2014 --- Minister of Economic Affairs in the German state of Mecklenburg-Vorpommern Harry Glawe announces decision to provide funding of €4.8 million for expansion of organic production at Arla's dairy site in Upahl.

The German state of Mecklenburg-Vorpommern is supporting the expansion of Arla's Upahl location in Northern Germany by providing a total of around €4.8 million in funding.

"Arla Foods has decided to grow locally and continue to expand its location here step-by-step," Minister of Economic Affairs, Construction and Tourism Harry Glawe said on Monday in Upahl.

"Our state welcomes not only the 414 jobs that are being secured today, but also the 58 additional jobs that are being created," the minister went on.

"This way Mecklenburg-Vorpommern shows its colours as an attractive, reliable investment location, especially in the food industry."

The total investment in the Upahl project is around €24 million. Minister of Economic Affairs Harry Glawe made an on-site pledge to provide funding in the amount of €4.8 million, drawing on the GRW regional aid fund ('Verbesserung der regionalen Wirtschaftsstruktur').

Among other things, the plan includes expanding the production of quark and organic products, investments in filling and packaging technology, as well as logistics. Kerstin Weiss, the responsible district administrator for Northwest Mecklenburg, was also pleased to hear about the funding.

"Arla Foods is a very important employer in our district, which is why we are very pleased to see the company making a clear commitment to this location," said the politician.

Vice President Manfred Remus, speaking on behalf of the management of Arla Foods Deutschland GmbH, thanked Minister of Economic Affairs Harry Glawe for the substantial support.

"The support makes it possible to expand our quark production capacity in particular at the Upahl location," said Remus.

"We are currently getting ready for the phaseout of milk quotas in Europe and need to make sure that we are able to refine the greater volumes of milk that will be produced by our owners in the future into high-quality, value-added products. Which is why this expansion makes perfect sense," Remus continued.

The Arla dairy in Upahl has been processing milk since 1994. In 2011, the former Hansa Milch e.G. merged with the European dairy cooperative Arla Foods amba.

"Apart from creating and securing jobs, it is of particular importance for the farmers to have a reliable buyer providing them with a guaranteed source of income," Minister Harry Glawe concluded.