Lactalis is creating around 50 US jobs as the France-based dairy major invests in two factories in New York state.
The world’s largest dairy manufacturer is ploughing about $75m into its facilities in Walton and Buffalo to expand production of mozzarella and sour cream.
Lactalis’ projects will be supported by tax credits from the local Empire State Development fund – $750,000 for the Walton site and $550,000 for the Buffalo plant.
According to a statement from New York State Governor Kathy Hochul and Esteve Torrens, the CEO of Lactalis’s business in the US, the investment will ensure the retention of 800 full-time jobs across the two factories. The projects are expected to be completed in 2027.
The facilities in Walton and Buffalo process 800 million pounds of raw milk annually from 236 local dairy farmers.
Torrens said: “Lactalis has two plants in New York state that are key to our growing business in the US. Our Buffalo plant is home to a significant ricotta and mozzarella production under the Galbani brand. Our Walton plant continues a rich tradition since 1882 of producing Breakstone’s Sour Cream and is essential to strengthening our cottage cheese business in a rapidly growing category.”
The Buffalo plant produces mozzarella, ricotta and provolone-style cheese under Lactalis’ Galbani brand, and also whey powder. The investment for the site is part of the $123m committed by the company for Buffalo from 2020 to 2027.
In this round, $60m has been earmarked for the installation of six new vats, the addition of a cheese belt and a robotic palletiser.
Lactalis said 20 of the new jobs will be created at the Walton sour cream and cottage cheese plant as the factory undergoes a $15m modernisation project to expand production. It will include new fillers, air filters, laboratory equipment, new roofing and boiler upgrades.
“By investing in the Lactalis USA facilities and assisting with improvements, New York is retaining hundreds of jobs and adding new jobs, as well as helping to support the region’s dairy farmers,” Hochul said.
“New York will continue to work with businesses in the agri-food sectors as they expand and grow to ensure good-paying jobs remain in our communities.”
The Walton and Buffalo facilities are among the 11 manufacturing plants and corporate offices Lactalis has in the US, according to the statement. It also has sites in Illinois, New Hampshire, California, Wisconsin, Idaho, Vermont and Arizona.
Lactalis’ factory in Tulare in California was the recipient of a $55m investment last year for its Président brand.
Meanwhile, Lactalis entered an agreement to acquire the US yogurt business of food peer General Mills in 2024.
Further afield, the French dairy major is bidding for the assets of Fonterra’s consumer business and the cooperative’s dairy and ingredients foodservice businesses in Australia.
The news emerged in May soon after reports surfaced that Canadian dairy giant Saputo, along with Japan’s Meiji Holding Co. and US investment firm Warburg Pincus, were also among interested parties.
“Lactalis boosts staff numbers in US with two factory investments” was originally created and published by Just Food, a GlobalData owned brand.
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