Dive Brief:
- Danone says it has completed an expansion of its operations in Ireland, as the world's largest dairy company seeks to boost production of infant formula for export to Asia.
- The opening of a new $32.25 million production line marked the final step in a four-year, $223.3 million expansion initiative of plants in Wexford and Macroom.
- When hiring for the new line is complete by the end of the year, Danone will have more than doubled the size of its staff in Ireland to 400.
Dive Insight:
One of the more interesting developments during Danone's expansion in Ireland was that the company opted to shutter three plants on the European continent while increasing capacity in Ireland.
The reason? The three plants produced fresh dairy products, which have seen sales plummet in Europe amid rising dairy prices. The Irish facilities, however, make milk powder - which can be shipped to Asia to feed the "white gold rush."
And now comes news that Danone is apparently making a similar move in Indonesia: exiting fresh and investing heavily in infant formula.