VIBY, DENMARK — Arla Foods and DMK have formed a joint venture to start a whey processing partnership for the global food processing industry. The name of the new business entity will be ArNoCo GmbH & Co. KG.

The two companies plan to invest €44 million ($62 million), of which €32 million will be used to build a new whey processing facility at DMK’s cheese plant in Nordhackstedt, Germany. An additional €9 million will be spent on Arla’s Danmark Protein plant in Nr. Vium, Denmark.

The joint venture will buy approximately 700,000 tonnes of whey annually from DMK and convert it into whey protein concentrate and lactose at the new facility. The W.P.C. will then be dried at Arla’s Danmark plant.

DMK will supply services on behalf of ArNoCo, and Arla Foods Ingredients will market, sell and distribute the products to the global marketplace.

The construction of the new facility is expected to start in October 2011 and to be in operation by the end of 2012.