US dairy processor Dean Foods is to build an US$85m manufacturing plant for its WhiteWave Foods subsidiary after “unprecendented” volume growth from the business.
The company plans to open the facility, set to be located in the Oak Cliff area of Dallas, in the first quarter of 2012.
Go deeper with GlobalData
The $85m project will create an initial 90 jobs and a spokesperson for WhiteWave said more could be employed if demand for WhiteWave products continues to grow.
The spokesperson told just-food that recent rising volumes had prompted the company to make the investment.
“2010 net sales for WhiteWave increased more than 10% compared to 2009, which was also strong,” the spokesperson said on Friday (4 March).
The investment comes with Dean Foods facing potential strategic and financial questions. There is concern on Wall Street that the company, which saw profits fall in 2010, may come close to tripping its financial covenants in the second quarter of this year.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataDean Foods chairman and CEO Greg Engles has indicated that the company could consider spinning off its WhiteWave-Alpro business to improve returns to shareholders.
Meanwhile, Dean Foods announced last week that president and COO Joseph Scalzo, who some industry watchers had seen as the leader of the company’s cost-cutting efforts, had left the business for an unnamed consumer packaged goods firm.
