The plant, which officially opened last month, is on the same site as the company's existing whey processing facility.
Lactose from the factory will be sold to the infant formula manufacturing sector.
The facility will produce dry blend lactose, which infant formula manufacturers use to increase output without compromising safety or the need for capital investment, Arla said.
“Our new lactose factory in Jutland is part of our drive to keep pace with growth in demand for high-quality lactose in the infant nutrition sector,” Luis Cubel, Arla Food Ingredient’s sales director for lactose said.
Henrik Andersen, the company’s chief executive, said the opening of the factory showed Arla Food Ingredients was not afraid to invest in its operations to grow the business where there was demand.