Polish dairy cooperative Mlekpol has secured a loan from the European Investment Bank to build a powdered dairy plant.

The EIB is lending Mlekpol EUR50m for the construction of a factory which is to be located in eastern Poland. The total cost of the project is around EUR400m, the bank noted.

The new facility will manufacture whey, milk protein and baby food. About 160 people will be employed in the new plant. "Full production capacity is expected to be achieved by mid-2019," the bank said.

EIB Vice-President Vazil Hudák added: "Mid-sized companies like Mlekpol are not only important in their regions, they are the backbone of Europe's growth and employment. Often, such companies find it unjustifiably hard to obtain finance suited to their needs. One of the EIB's top priorities is to address this. In order to offer tailor-made financing solutions for our customers, we strive to develop innovative products, and we are delighted to see that core initiatives like the EFSI deliver right where they are needed."