Glanbia announces €5m upgrade at Wexford Creamery
Published 27/05/2014 | 05:42
GLANBIA has announced plans for a €5 million upgrade of facilities at its Wexford town plant.
The proposal was officially announced in a letter outlining Glanbia's plans which was circulated to milk producers across the county over the past week following its completion of the purchase.
The investment in upgrading the Wexford Creamery Plant is the key element of the new deal securing the future of the business.
It also includes a commitment to become one of the anchor tenants for gas supply in Wexford town.
As well as upgrading facilities, Glanbia is also proposing to substantially increase upfront payments to milk producers across Wexford.
In the letter which was sent to producers this week, Chief Executive of Glanbia Jim Bergin said that discussions are already underway with the board of Wexford Milk Producers (WMP) to release an additional sum of €6.3million as an upfront payment to be spun out on a basis to be agreed by the board, which would reflect the loyalty of its active members.
'We have taken on board the desire of many milk suppliers to receive a greater amount of cash up front. The commitment of loyal Wexford suppliers to supply their milk to GIIL has ensured a successful transaction. We feel it is fair that this commitment is reflected in an increased upfront payment,' said Jim Bergin.
Under the enhanced terms, Glanbia will pay a total of €10 million up front.
A long term investment would remain in the form of preference shares in GILL. Mr Bergin also moved to assure all Wexford milk suppliers that they will be treated equally with GILL suppliers, receiving the same milk price which represents an increase of around 2c per litre on average. A series of information meetings will be held in the early weeks of June where all benefits of the new relationship and of the Glanbia farm development service will be explained in detail to producers.