Norway. TINE SA

The EUR 79 million loan has been provided for the expansion of TINE's dairy in Kalbakken, Oslo. The expansion project is part of TINE's new strategy to optimise its logistics process and make it more cost efficient and environmentally friendly. The expanded dairy will replace three other dairy facilities.

TINE is organised as a cooperative owned by about 15,000 dairy farmers. The core business is the processing and sale of milk, cheese and other dairy and milk products, as well as juice, ice cream and ready-made food. TINE is Norway's largest producer, distributor and exporter of dairy products.

The investment at Kalbakken improves logistics and warehousing systems. Closing three dairy facilities and moving the production to the expanded dairy will lead to an estimated energy efficiency gain of 7.8 GWh per year. This corresponds to a decrease of 51% in use of primary electricity and fuel oil. The investment in production equipment enables the facility to start producing at full capacity, which has not been possible earlier. East-central Norway, the market area of TINE Meieriet Oslo, is approximately 45% of TINE's total revenue for fresh dairy products. Efficient logistics and warehousing systems lead to improved working conditions, improved competitiveness and cost efficiency.

By closing three small dairies and processing the milk at Kalbakken, an energy efficiency gain in use of primary electricity and fuel oil is expected. Further to this, a heat pump system has been installed thereby reducing the need for external heating supply to the facility.

The facilities to be closed down are still in full operation. Preliminary studies have been conducted to establish if any special attention concerning contamination of the ground or any other environmental liabilities exist at the facilities. No such indications have so far been uncovered.