independent

Tuesday 23 September 2014

Massive €33 million to be invested in Mitchelstown

Bill Browne

Published 24/10/2013 | 05:26

  • Share

DAIRYGOLD has unveiled details of a €33 million plan to expand and upgrade its Mitchelstown milk processing operation ahead of the abolition of quotas in 2015.

  • Share
  • Go To

DAIRYGOLD has unveiled details of a €33 million plan to expand and upgrade its Mitchelstown milk processing operation ahead of the abolition of quotas in 2015.

The plan, which will generate up to 100 new jobs, has been given a warm welcome by junior research and Innovation Minister Sean Sherlock who described it as "great news for Cork and the wider Munster area."

It makes provision for a new six-tonne/hour multi-purpose milk drying facility and other infrastructural developments at Dairygold's Castlefarm site.

The new jobs will be created during the construction, installation and commissioning phases of the new processing facilities.

The investment is being supported by the Department of Jobs, Enterprise and Innovation through Enterprise Ireland.

It will ensure that Dairygold is able to keep pace with the expected increase in milk production following the much-heralded abolition of EU quotas in April 2015.

Dairygold currently processes 950 million litres, or 20% of Ireland's milk pool, producing cheese and dairy ingredients which it exports to more than 50 countries.

The company's more than 3,000 milk suppliers had forecast a significant post-quota increase in milk production in excess of 50% (or 500 million litres) by 2020, requiring an expansion in Dairygold's peak processing capacity.

It has responded by commissioning the country's first post quota infrastructural development in Mitchelstown, which is expected to be fully operational in time for the 2014 peak milk season.

All produce from the expanded Mitchelstown operation will be destined for export markets.

Dairygold CEO Jim Woulfe said the announcement heralded the first phase of the company's ambitious post 2015 expansion programme.

"This new facility will provide multi-product processing capability allowing expansion in the supply of a variety of higher value dairy ingredients, including those that compliment our ambitions for the infant formulae sector," said Mr Woulfe.

"This is more than just a processing expansion. It also improves the energy saving and environmental performance of our Castlefarm operation," said Mr Woulfe.

Minister Sherlock said the plan underscored Dairygold's position as a highly innovative company and an important employer in the North Cork region.

"The company clearly recognises that innovation is the driving force for future growth and this investment is a big vote of confidence in the continued growth of the Irish dairy and food sector," said Minister Sherlock.

"In addition to the 100 new jobs, this will also sustain the current employment at the Castlefarm operation, which is an important factor. This is great news for Cork and the wider Munster area," he added.

Corkman

Read More

GrabOne Deals

News