Glanbia Ingredients Ireland Opens New EUR235m Dairy Processing Facility

06 Mar 2015 --- Glanbia Ingredients Ireland has opened a €235m hi-spec infant formula standard facility in Belview, a move that will create 1,600 direct and indirect jobs in South East.

The facility will manufacture specialized milk powder products and nutritional ingredients to meet the demands of multi-nationals in infant formula and other industries operating in Asia, the Middle East, Africa and Central America.

This is expected to contribute around €400m to the economy every year.

Commenting on the facility, Ireland Minister for Agriculture, the Marine and Food Simon Coveney TD said: "The Belview project is the largest indigenous infrastructure investment by an Irish company in 80 years. As well as being a hugely positive development for the company, it is a source of tangible economic benefit and optimism for almost 5,000 Glanbia farmer suppliers and for the broader rural community.

"The Belview project has attracted international attention and has helped to cement the Ireland's position as a leading player in Global dairy markets. It is a wonderful achievement and I wish all of those involved every success in the future."

Glanbia Ingredients Ireland currently processes close to 1.8 billion liters of milk or 30% of Ireland's milk pool into a range of dairy ingredients for export to more than 50 countries.

The company's 4,800 milk suppliers intend to increase milk production by 63% by 2020.

EU Agriculture Commissioner Phil Hogan said: "Since the Glanbia Group started to scope out this project four years ago New Zealand has grown its milk pool by almost 3.5 billion litres – the equivalent of 65 per cent of Ireland's entire output. In the past four years the changes have been dramatic and Europe has had to stand on the side lines while world trade in dairy has grown from 53 billion litres to 65 billion litres. Each year until 2030, at least 150 million people will be entering the middle class, bringing almost 60 per cent of the world's population into a middle income bracket. In China alone, demand for dairy is set to grow by 43 per cent by 2019. To meet the pace of development, the predicted pace of dairy growth cannot afford to slow. In 23 days’ time Ireland and Europe will be able to enter the fray. After more than 30 years of quota restrictions, our dairying potential is ready to be realised. We have the assets which will enable us to seize the upcoming opportunities on the global marketplace. The key ingredients of a resilient competitive primary sector, a highly innovative agri food industry coupled with a skilled labour force are all on view here today. This facility in Belview coupled with Ballyragget, Wexford and Virginia are seen and will continue to be seen as world class in terms of high-tech and high value added. What has been achieved here is a credit to the foresight of the board led by Liam Herlihy and the excellence of the management team under the direction of Jim Bergin and Siobhan Talbot"

Minister for Jobs, Enterprise and Innovation, Richard Bruton said: “Jobs are growing in every region of the country – although they are growing more rapidly in some regions than in others. The South East is performing strongly, with the fastest rate of jobs growth in the country, but we must do more. At the heart of our Action Plan for Jobs is ensuring that we accelerate jobs growth in every region of the country, and we have put in place a range of measures to deliver on that. Today we are officially opening this world-class dairy facility, part of a €235million investment programme supported by my Department through Enterprise Ireland, which will deliver hundreds of jobs for the South East over the coming years. I wish Jim and the team every success with this project and look forward to working with them over the coming years”.

Minister for Agriculture, the Marine and Food, Simon Coveney said: “The Belview project is the largest indigenous infrastructure investment by an Irish company in 80 years. As well as being a hugely positive development for the company, it is a source of tangible economic benefit and optimism for almost 5,000 Glanbia farmer suppliers and for the broader rural community. This flagship investment is a real sign of confidence in the future of Ireland’s dairy sector. The project has been made possible by a decision confirmed during Ireland’s presidency of the European Union in 2013 to abolish dairy quotas, and by the vision outlined in the Food Harvest 2020 strategy. It could not have been delivered without the energy and determination of Glanbia’s management and its suppliers. The Belview project has attracted international attention and has helped to cement the Ireland’s position as a leading player in Global dairy markets. It is a wonderful achievement and I wish all of those involved every success in the future.”

CEO of Glanbia Ingredients Ireland Jim Bergin stated: “Today represents the culmination of a long journey from local vision to the realisation of the global opportunity presented by the removal of EU daily quotas. This state of the art facility is primed to meet the global demand for the highest quality, sustainably manufactured, nutritional Ingredients. Currently this small island supplies 10% of the world’s infant milk formula. With the capacity enabled here at Belview, working closely with the world’s leading infant formula manufacturers, we hope to increase milk production by 63% over the next five years. The economic and social contribution of this investment will be felt way beyond the south east of this country, but it will be in local farms, farm families, and farm communities where it will be most pronounced. The farms of our Co-op and the suppliers that have worked so hard to meet our exacting quality standards. This vision could not have been realized without support from our parent companies, Glanbia plc and Glanbia Co-operative Society Ltd and from Enterprise Ireland, who helped us realise this generational opportunity. I am proud of what has been achieved here and even more proud of what I believe is to follow.”

Julie Sinnamon Chief Executive of Enterprise Ireland added: “This facility at Belview will further secure Ireland’s standing as a world-leader in the dairy industry. Food is Ireland’s number one export sector and critically important to our economy and export-led growth. Enterprise Ireland is delighted to support this significant investment and looks forward to working with Glanbia Ingredients Ireland Ltd as they embark on this ambitious expansion and grow and develop their international sales – sustaining and creating jobs in Ireland.”

Glanbia Chairman, Liam Herlihy, said: “The opening of the Belview plant is a historic day for the Glanbia Group and in particular for our farmer stakeholders who had the vision and courage to create Glanbia Ingredients Ireland and in so doing to build the first green field dairy site to be developed in Ireland in over 40 years. With only 23 days to go to quota abolition, today realises an ambition of the Glanbia organisation as it ushers in a new era of post quota milk production growth. This development is a reflection of the expertise and dedication of the management, led by Jim Bergin, and the full team at Belview who have worked tirelessly to open the plant on time and on budget. With our progressive milk suppliers and this nutritional ingredients facility, built to infant formula standard and run by an experienced management team, I believe we are well positioned to take advantage of the opportunities that the ending of quotas will present for all our stakeholders.”

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