Polish dairy cooperative Mlekpol is investing 400m zlotys ($110m) in its plant in the town of Grajewo to scale up the production of cheese.

The cash will be invested from this year through 2029 and will involve expanding storage infrastructure, adding new cheese packaging lines, updating equipment, and automating technological processes.

Mlekpol said in a statement that the project to “significantly upgrade” the Grajewo facility, where its headquarters is based, is expected to generate new jobs and will be supported by tax reductions from the Suwałki Special Economic Zone.

The zone is one of 14 set up by the Polish government to foster economic growth.

Tadeusz Mroczkowski, the president of Mlekpol, called the investment project a “historic milestone” for the group.

“As one of the largest investments in Mlekpol’s history, it will boost our processing capacity, streamline operations, and strengthen our position both in Poland and internationally,” Mroczkowski said.

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Mlekpol declined to provide the finer details of the investment, including the number of additional cheese production lines and new jobs, and whether the project will involve AI or robotics, when approached by Just Food.

According to Mlekpol, the dairy co-op is one of the largest in Poland and Europe, representing over 7,500 milk producers. Across all of its facilities, the business processes six million litres of milk daily.

It operates 13 production plants in Poland: Grajewo; Zambrów; Mrągowo; Kolno; Suwałki; Radom; Bydgoszcz; Sokółka; Dąbrowa; Białostocka; Zwoleń; Łódź; and Gorzów Wielkopolski.

Mlekpol’s website says the co-op produces around 500 products, including UHT milk, cream, fermented dairy products, butter, cheeses, milk powders, buttermilk, whey powder, and whey protein concentrates.

The co-op supplies the retail and foodservice channels, as well as B2B customers. Brands include Łaciate, Milko, Mazurski Smak, Rolmlecz, Jogo, and Maślanka Mrągowska.

As well as supplying the local market, Mlekpol exports to more than 100 countries in Europe, the Middle East, Asia, Africa and the Americas.

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