Glanbia Nutritionals, DFA and Select finalise location for $470m plant

Glanbia Nutritionals, Dairy Farmers of America (DFA) and Select Milk Producers (Select) have confirmed the location for their new joint venture (JV), large-scale cheese and whey production facility, which will be built with an investment of $470m.

The new plant will be located in St Johns, Michigan, and is expected to be commissioned in the fourth quarter of 2020.

Glanbia Nutritionals CEO Brian Phelan said: “The finalisation of the preferred location is a critical step on our journey to deliver a new ultra-modern dairy facility in Michigan.

“We want to thank the state and city authorities for their continued support as we move to commence construction as soon as possible.”

The site has been chosen due to its strategic location in terms of milk supply, as well as the availability of labour in the area, its established transport links and positive business environment.

All three of the JV companies engaged with the state, city officials and community leaders to address issues such as cost, infrastructure and planning during the location selection process.

The Michigan Economic Development Corporation also approved a package of incentives in response to these concerns.

The facility will be designed to process eight million pounds of milk per day to produce a range of cheese and whey products for both domestic and international markets.

It is slated to employ nearly 250 personnel upon reaching its full production capacity.

DFA chief financial officer Greg Wickham said: “The construction of this plant in St Johns will not only address a growing industry need for Michigan plant capacity, but it also adds value and supports our local dairy farm families in this area.”

The three companies have confirmed that an agreement has been reached with Proliant Dairy Ingredients for the processing of whey permeate at the site.

Proliant has agreed to invest $85m in an adjoining facility as part of the arrangement, which will create up to 38 jobs.