€50m loan for Polish dairy Mlekpol
The EIB financing for the 2,200-employee cooperative is guaranteed under the European Fund for Strategic Investments (EFSI), part of the European Commission’s Investment Plan for Europe.
With the funding, Mlekpol, which is based in Grajewo, will construct the new milk processing facility to allow for more efficient production of higher value added dairy products.
The total investment cost is estimated to be more than PLN 400m ($95.4m).
The estimated production capacity is 3m liters of milk and whey per day. The investment launch is planned for 2018, while full production capacity is expected by mid-2019.
The new powdered dairy products production facility will manufacture specialized products such as high purity whey and milk protein, as well as high-quality baby food. About 160 people will be employed in the new plant.
European Commission Vice-President Jyrki Katainen, responsible for jobs, growth, investment and competitiveness, said expanding and modernizing Europe's agricultural production facilities requires sustained investment.
He said the EFSI-backed loan agreement allows Mlekpol to invest in the facilities necessary to grow its range of high-quality products and create new jobs.