# Arla dairy operations and investments in Sweden > Developing situation record from CLSTR: https://clstr.news/situations/arla-dairy-operations-and-investments-in-sweden > Updated: 2026-10-19T11:31:39.000Z. Sources: 3. Developments: 2. The dairy cooperative Arla is undergoing a series of operational shifts and investments across its Swedish facilities. In Falköping, the company announced the decommissioning of the Falbygdens Ost facility, a move expected to result in approximately 60 job losses by February 2027. Arla cited declining demand for imported specialty and dessert cheeses and profitability challenges as reasons for phasing out the site’s import and packaging operations. The company plans to redirect resources toward Swedish dairy production to support national food security. Concurrently, Arla is investing approximately 35 million SEK into its Östersund dairy to transition the plant to 100 percent fossil-free operations. This investment includes the installation of two new electric boilers to replace existing heating systems, with the equipment expected to be operational by early 2028. This follows a 310 million SEK investment to modernize the Falkenberg dairy. These developments occur alongside broader organizational changes, including the discontinuation of Falbygdens cheese and the termination of agreements with 29 organic farms. ## Timeline ### 2026-10-19: Arla to invest 35 million SEK in fossil-free Östersund dairy Arla will invest 35 million SEK in its Östersund dairy to install new electric boilers, aiming for 100 percent fossil-free production by 2028. 2 sources. https://clstr.news/cluster/arla-to-invest-35-million-sek-in-fossil-free-stersund-dairy ### 2026-10-05: Arla to decommission Falbygdens Ost facility in Falköping Arla is decommissioning the Falbygdens Ost import and packaging facility in Falköping, Sweden, resulting in approximately 60 job losses as the cooperative shifts focus to Swedish dairy production. 3 sources. https://clstr.news/cluster/arla-to-decommission-falbygdens-ost-facility-in-falkping --- Cite as: Arla dairy operations and investments in Sweden. CLSTR, https://clstr.news/situations/arla-dairy-operations-and-investments-in-sweden