Glanbia plc has today announced two significant projects in Ireland, creating 90 jobs and entering the global UHT (Ultra-Heat-Treated) dairy market for the first time.

A new UHT plant will be built in a vacant plant at Castleblayney, Co Monaghan to produce long-life liquid milk and cream suitable for export to emerging markets such as China, Europe and the Middle East. The facility is expected to be operational by early 2014 and will employ up to 40 people. It will manufacture a range of standard and fortified UHT milk and cream products, including export versions of Glanbia’s market dairy leading brand, Avonmore Milk. The first exports are expected in the second half of 2014.

The Monaghan investment is being supported by the Department of Jobs, Enterprise and Innovation through Enterprise Ireland and the Department of Agriculture and Food. The location in the Border Midlands and West region (BMW) increases available grant aid. From an Irish industry point of view, the location outside of core Glanbia territory is significant. The Monaghan location is convenient to Glanbia’s group of all year round milk supply producers in Louth and Meath. If additional volumes were needed in the long term, it is close to the year round milk supply in Northern Ireland, where Glanbia also has a supply base.

It is the first export venture for Glanbia Consumer Products, which is the market leader in fresh milk in Ireland through the Avonmore and Premier brands. The company has been losing market share and profitability on the domestic Irish market due to increased penetration by own label milk and Northern Ireland’s 25% share of the Republic’s fresh milk market.

Colin Gordon, Chief Executive Officer of Glanbia Consumer Products said today “This new state of the art UHT facility is a key part of our strategy to develop an international business for Irish liquid milk and cream products. There is a strong business case for this investment and we have had an excellent response from potential customers, globally.

While it has a limited market share in Ireland, UHT dominates dairy consumption in many markets, particularly those with higher temperatures or poor retail infrastructure. In Ireland, Lakeland Dairies is the only processor with a significant UHT business.

Performance Nutrition Headquarters

In a separate development, Glanbia Global Performance Nutrition is locating its Europe Middle East and Africa (EMEA) head office in Dublin to support the international growth of its €700m sports nutrition brand business. The company said: “this development combined with a number of new positions being created in Global Ingredients and Global business services, will create an additional 50 skilled jobs to be located in new offices in Dublin”. The precise location has yet to be confirmed, although it is likely to be convenient to Dublin Airport.

Minister for Agriculture, Food and the Marine, Simon Coveney TD said: “I am delighted to welcome the announcement of 90 jobs and associated investments by Glanbia. They are an endorsement of Ireland’s Food Harvest 2020 plan and demonstrate the confidence that Glanbia has in its suppliers to deliver high quality milk. Developing an Irish branded, UHT product, for the Chinese market is a really important, strategic move for both the company and the Irish Dairy industry. I am also heartened to see the company set up its EMEA, head office, in Dublin for its Performance Nutrition business. This is a part of the dairy industry where Ireland and Glanbia are leaders”.

The choice of Dublin as the location for the new EMEA headquarters is the latest in a recent trend for IT and services companies to select the capital city rather than regional towns. Proximity to Dublin airport and the ability to retain mobile IT professionals are seen as the key factors. Recent Irish Farmers Journal figures found that 71% of IDA supported job announcements this year have been in Dublin. Kerry Group, Ireland’s other main dairy based plc, also selected a site close to Dublin – Naas - for their new EMEA facility.