Dairy expansion: Glanbia Nutritionals and partners invest US$470m in new Michigan facility

14 Aug 2018 --- Glanbia Nutritionals, Dairy Farmers of America and Select Milk Producers Inc. are set to build a new large-scale cheese and whey production facility in St. Johns, Michigan, US as part of a joint venture. The project is expected to be commissioned in the Q4 of 2020 and will cost approximately US$470 million.

“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,” explains Greg Wickham, Chief Financial Officer at DFA.

The partners have formed an agreement with Proliant Dairy Ingredients to process the whey permeate. Proliant will invest US$85 million in a further facility, creating up to 38 jobs, according to the companies.

The facility is expected to process 8 million lbs of milk per day into cheese and whey products for American and international markets. 

“Once again, Michigan’s national reputation as the best place to grow jobs is bringing new investments to our thriving agriculture sector,” says Gov. Rick Snyder. “Michigan’s dairy industry is an essential economic driver in our state. This new investment elevates and expands our potential to rise even higher while bringing new jobs and opportunities to this region.”

The St. Johns site meets key selection criteria in terms of strategic location relative to milk supply, reliable transport links, a positive business environment, according to the partners who are working with state and city officials as well as community leaders to address issues such as cost, infrastructure and planning in order to finalize the decision. 

The Michigan Economic Development Corporation (MEDC) has approved an estimated US$27.6 million in grants and tax abatements from Michigan Strategic Fund, Michigan Department of Agriculture and Rural Development and Michigan Department of Transportation, amongst other incentives. 

“This project is vital to the success of the Michigan dairy sector,” notes Jeff Mason, CEO of MEDC. “Michigan’s dairy producers – already among the most efficient in the world – will now be even more competitive and prepared for the market challenges ahead.”

“The finalization of the preferred location is a critical step in our journey to deliver a new ultra-modern dairy facility in Michigan,” states Brian Phelan, CEO of Glanbia Nutritionals. “We want to thank the state and city authorities for their continued support as we move to commence construction as soon as possible.”