Last checked at 27 Jan 2017 07:00
Glanbia plc announce advance discussions for creation of new US Joint Venture to produce cheese and whey
27th January 2017
Glanbia plc, the global nutrition group, is announcing that it is in advanced discussions with Dairy Farmers of America Inc. ("DFA"), Michigan Milk Producers Association ("MMPA") and Foremost Farms USA ("Foremost Farms") to create a stand-alone joint venture to build and operate a new cheese and whey production facility in the State of Michigan, USA. Upon completion, the plant is projected to process 8 million pounds (3.6 million litres) of milk per day. It is proposed that 50% of the joint venture will be owned by Glanbia and the 50% balance will be owned by DFA, MMPA and Foremost Farms.
As part of the proposed joint venture DFA, MMPA and Foremost Farms would supply all milk required by the plant while Glanbia will have full responsibility for all commercial, technical and operational aspects of the business. If the project proceeds as planned, commissioning of the new facility is expected to take place in the second half of 2019.
Commenting on the announcement, Brian Phelan, CEO of Glanbia Nutritionals said,
"Glanbia is delighted to announce this exciting proposed project in the state of Michigan with DFA, Michigan Milk Producers Association and Foremost Farms. Consistent with Glanbia's growth strategy, this proposed venture will build on our position as the number one producer of American style cheddar cheese and simultaneously expand our global position as a supplier of advanced technology whey protein to the nutritional sector. This proposed Joint Venture is a strategic move by all the partners to benefit from the growing, large scale milk pool in the state of Michigan."
ENDS
For further information contact
Glanbia plc +353 56 777 2200
Investor contact:
Liam Hennigan, Head of Investor Relations: +353 86 046 8375
Media Contact:
Mark Garrett, Director of Communications & Public Affairs: +353 86 601 9655