Ireland’s Carbery Group is looking to diversify its cheese portfolio with the building of a new manufacturing facility.

The County Cork-based manufacturer of Dubliner brand cheese is to invest EUR78m (US$88.6m) in the project which it said will allow it to diversify from its exclusive production of cheddar cheese into an expanded range of offerings. 

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Carbery said it was responding to increased market growth and consumer demand for mozzarella and other cheese varieties in emerging markets.

The company said the new production facility also signifies increased milk production capacity at the site, which will have the capacity to process four million litres of milk each day. 

Construction has already started and is planned for completion in early 2020. 

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Jason Hawkins, Carbery’s CEO, said: “Product and market diversification has always been a core part of our business and on-going strategy, with this project in the planning for almost two years. 

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“As a global organisation, we are constantly looking to international consumption trends to further grow our offering and our business.  Cheese such as mozzarella provide us with a more diversified product range and an opportunity to build a stronger foothold in new and emerging cheese markets such as Asia and the Middle East, while also providing us with a new product range and market opportunities, in sectors such as foodservice.”

Carbery has received pre-approval for a grant of EUR5.8m from Enterprise Ireland.

The remaining EUR72.3m for the project is being directly funded by Carbery, through its capital reserves. The company said it will be increasing its borrowings to fund the investment.