December 30, 2016

Polish dairy firm to build new US$95M plant

Mlekpol, Poland's largest dairy manufacturer, will be building a powdered dairy production plant in Mrągowo in eastern Poland, to be partly funded by a EUR50-million (some PLN220.9-million or US$52.58 million) loan grant from the European Investment Bank (EIB). 

The European Commission said the EIB financing for the 2,200-employee dairy cooperative is guaranteed under the European Fund for Strategic Investments (EFSI), the heart of the European Commission's Investment Plan for Europe. 

It said the new dairy production plant, whose total investment cost is estimated to be over PLN400 million ($96.27 million), would allow Mlekpol to increase its production range and capacity, as well as allow for more efficient production of higher value-added dairy products. Some 160 people are expected to be employed in the facility once it becomes operational.

"Expanding and modernising Europe's production facilities requires sustained investment. That is where the EFSI can play a crucial role. I am glad that [the] EFSI-backed loan agreement will allow Mlekpol to invest in the facilities necessary to grow its range of high-quality products and create new jobs", said European Commission Vice President Jyrki Katainen, who is responsible for jobs, growth, investment and competitiveness.

The new facility, whose estimated production capacity is 3 million litres of milk and whey per day, is expected to be fully operational by mid-2019.