22 August 2007 - The board of directors has concluded that it is profitable to build a new dairy plant at Jæren, and have today decided to start a pre-engineering project. A final decision will be made on the foundation of a report made by this project.
- We need a solid industry to meet future competition. We have to adjust the production capacity and exploit the scale advantages to achieve an effective and future-oriented production, says deputy managing director in TINE, Trond Smeby.
A report submitted in April 2007, claimed that TINE might reduce its annual costs with more than MNOK 20 in a period of fifteen years by building a new dairy plant, compared to sustain the production in today’s four dairies in the area. The last estimates shows that the cost of building a new dairy plant will be about MNOK 1 000.
Calculations show that the air pollution will be reduced by more than 30 percent compared to the present dairy structure.
The report has been on a comprehensive hearing and the submissions support the building of a new dairy plant.
- A pre-engineering project will include a new plant, localization and financing. There are also other issues to clarify. We estimate that such a project will go on for approximately 6 months Smeby says.