Arla Foods to sell off packaging subsidiary

Arla Foods is set to sell its packaging subsidiary Danapak Flexibles to Austrian-based Schur Flexibles Group. Subject to approval by the relevant competition authorities the move is expected to take effect by July 1st.

Danapak Flexibles supplies packaging for companies in the pharma, dairy, and food industries, Arla took over the full ownership of the firm in 2009.

“We believe this is a ‘win-win’ situation for all parties involved – for Danapak, for Schur Flexibles and for Arla. Over the past several years Arla has sold off subsidiaries that do not have a direct link to dairy production in order to focus on our core business. Since it is not within Arla’s core business to produce packaging, we are no longer the right owner of Danapak, who will be better suited under new ownership that can take the company to the next level in its future development,” says vice-CEO in Arla Foods, Povl Krogsgaard.