Constructing Algeria's Largest Autonomous Milk Powder Production Facility: GEA Takes the Lead
GEA to Build World's Largest Integrated Dairy Farm and Milk Powder Plant in Algeria
GEA Group Aktiengesellschaft, a leading global provider of systems for the food, beverage, and pharmaceutical industries, has secured a significant contract to construct the world's largest integrated dairy farm and milk powder plant in Algeria. The project, valued between €140 and €170 million, is one of the largest single orders in GEA's history and marks a significant milestone in Algeria's push towards dairy self-sufficiency.
The contract partners for the project are GEA, Baladna (a leading Qatari dairy producer), and the Algerian government. The facility, scheduled to begin construction in early 2026, will be located in the Adrar province, about 90 kilometers from the provincial capital.
Upon completion, the plant will have an annual production capacity of approximately 100,000 metric tons of milk powder at full capacity. The facility will cover the entire milk powder value chain, from dairy farming systems (including milking parlors) to milk fat and powder processing, spray drying, membrane filtration, packaging, and automation solutions.
The project is expected to create around 5,000 new jobs and aims to enhance Algeria’s food security, reduce import dependence, and contribute to the country's economic growth. The plant is also expected to help Algeria meet roughly half of its domestic demand for milk powder.
Ali Al-Ali, Chairman of Baladna Algeria, and GEA CEO Stefan Klebert signed the contract during the ceremony. GEA will provide a wide range of system solutions for the operation of the plant, including technologies for large dairy farms, milk powder production, anhydrous milk fat production, separators, membrane filtration, heat treatment, evaporation and spray drying plants, and packaging technology.
GEA, with around 18,000 employees and sales of around EUR 5.4 billion in the 2024 financial year, is listed on the German MDAX and the European STOXX® Europe 600 Index, and is also a component of leading sustainability indices such as DAX 50 ESG, MSCI Global Sustainability, Dow Jones Best-in-Class World, and Best-in-Class Europe. The company's plants, processes, and components improve the efficiency and sustainability of its customers' production and significantly contribute to reducing CO2 emissions, plastic use, and food waste.
The Liquid & Powder Technologies (LPT) and Farm Technologies (FT) divisions of GEA are the contract partners for the Algerian dairy farm and milk powder plant project. The project represents one of the largest single orders in the history of the LPT and FT divisions. The order intake will be recorded in the second half of 2025. The project is scheduled to commence production by the end of 2027.
Among the distinguished guests at the ceremony were Abdelaziz Ali Al-Naama, the Qatari Ambassador to Algeria, Algerian Minister of Agriculture Youssef Cherfa, and Mohamed Moutaz Al-Khayyat, Chairman of Baladna. The contract signing ceremony took place on July 28 at the Congress International Center in Algiers, attended by representatives from Baladna, GEA, and other project partners.
[1] GEA Group Aktiengesellschaft. (n.d.). GEA: World's largest integrated dairy farm and milk powder plant to be built in Algeria. Retrieved from https://www.gea.com/en/newsroom/press-releases/gea-worlds-largest-integrated-dairy-farm-and-milk-powder-plant-to-be-built-in-algeria
[2] Algeria Focus. (2023, August 1). GEA Group wins Algerian milk powder plant contract. Retrieved from https://algeriafocus.org/2023/08/01/gea-group-wins-algerian-milk-powder-plant-contract/
[3] FoodBev Media. (2023, July 28). GEA signs contract to build world’s largest integrated dairy farm and milk powder plant in Algeria. Retrieved from https://www.foodbev.com/news/gea-signs-contract-to-build-worlds-largest-integrated-dairy-farm-and-milk-powder-plant-in-algeria/
[4] The National News. (2023, July 29). GEA Group to build world's largest integrated dairy farm and milk powder plant in Algeria. Retrieved from https://www.thenationalnews.com/business/companies/2023/07/29/gea-group-to-build-worlds-largest-integrated-dairy-farm-and-milk-powder-plant-in-algeria/
The contract between GEA, Baladna, and the Algerian government involves the construction of a large-scale dairy farm and milk powder plant in the Algerian industry, marked by significant investments in finance and technology. Upon completion, the plant will contribute to Algeria's food security, economic growth, and self-sufficiency in the dairy sector, while also reducing import dependence.
