LacPatrick invests €42m to meet projected demand of exports
LacPatrick was formed by the merger in September of Town of Monaghan Co-op with Ballyrashane Co-op.
The merged entity is expanding output to meet emerging market demand in South-East Asia and Africa.
Fifteen new jobs will be created at the plant. Work has begun on the site, which is due to be fully operational by April 2017.
LacPatrick group operations director Tommy Thompson said: “This is an exciting announcement to make on the back of our recent merger and evidences the strength of the newly combined entities.
“LacPatrick injects around €170m annually into the dairy farming community in Ulster and this huge investment, the biggest of its kind in a generation, is destined to secure and further enhance this return to the farming community in the years ahead.”
Big turnout at first producer meeting of new co op lacpatrick. pic.twitter.com/wiodoiuuRj
— David Wright (@dwright_IFJ) November 10, 2015
The Artigarvan plant exports milk powders to more than 30 countries worldwide. The value-added dairy ingredients plant will also have one of the lowest carbon footprints of its kind in Western Europe.
“In our view, there has never been a better time for Ulster farmers to grow their businesses, safe in the knowledge that there is local and international confidence in the quality of produce, the demand for which is increasing all the time,” Mr Thompson added.
“LacPatrick is the only processor of milk left in the north west of the island with a direct route to export markets and it is our members who stand to benefit.”
The investment will see state-of-the-art dairy processing technology developed at the plant, using the recently announced Strabane Gas link as its primary source of energy.
As well as securing the €2.8m of wages and salaries which the plant currently injects into the local area, the enhanced plant will also underpin the future of the co-op’s 1,000-plus family farm enterprises who supply milk to LacPatrick.
A pioneering new evaporation and spray-drying tower has been specifically designed to make advanced dairy ingredients for the rapidly expanding markets in Europe, Middle East, Africa, and Asia and will be accommodated within a new 30,000 sq ft building within the current Artigarvan site.
At its peak the 15-month construction project, to be delivered by a number of local contractors, will provide employment for more than 150 construction workers.
LacPatrick predicts that the indirect benefit to the local economy wil be significant, on top of the direct farm payments of £120m and direct labour at the facility, providing a real boost to the economy of West Ulster.
LacPatrick group chief executive Gabriel D’Arcy said: “We are delighted to be making this strong statement of confidence that has huge significance for us, our suppliers and our shareholders.
“This announcement follows the equally exciting formation of LacPatrick and underpins the vision of the respective boards and members of the founding Co-ops.
“This leading edge investment, totally funded by LacPatrick, positions the company competitively at the forefront of the developing market for advanced dairy technology.”
Mr D’Arcy said it was a key part of the co-op’s measured growth strategy, with further major announcements expected during the next five-year period as it consolidates its position as a new force within the Irish dairy industry.”
The Artigarvan plant formerly operated under the Town of Monaghan name. The company has been in existence on the current site since 1902. LacPatrick employs 50 people.
