Danone is expanding its skyr production in France, a move the dairy giant said reflects the “strong and sustained growth” of the category.
Some €20m ($23.5m) will be split between two of the company’s facilities in Normandy, a site in Ferrières-en-Bray and another in Le Molay-Littry.
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At the Ferrières-en-Bray site, the capital will be used to install two new production lines, one of which is expected to be commissioned in the second half the year.
The facility has 12 lines and a daily output of 3.5 million pots.
Meanwhile, Danone will start producing skyr at the Le Molay-Littry plant for the first time, including organic SKUs under its Les 2 Vaches brand.
Danone said it aims to “secure and consolidate” existing jobs at the sites with the investments.
Both the factories supply customers in France and in other European markets.
The facility in Ferrières-en-Bray exports more than half its production to markets including the UK, Germany and Italy. The site in Le Molay-Littry exports a “smaller share” with the volume expected to grow by this year, as per the statement.
Danone said the projects meet its broader industrial strategy to relocate production volumes back to France.
The company has set a target to move 45,000 tonnes of products to France in 2026, a “significant” portion of which will be handled by these two Normandy sites, it added.
In November, Danone announced a “major” investment at a factory in Canada. The expansion of the site in Boucherville will increase yogurt output at the plant by 40% and its raw milk processing capacity by 20%.
Three months earlier, the company set out plans to expand its Minster yogurt factory in Ohio, which produces brands such as Oikos, Activia, Dannon and Danimals.