Carbery Group has announced that it has secured a European Investment Bank (EIB) loan to the value of €35 million.
The international dairy, ingredients and flavours business, which is 100% owned by four Irish dairy cooperatives, said that the investment will be used to 'enable the expansion and diversification' of its Ballineen facilities.
The 12-year loan is the first ever EIB financing for Carbery Group, and the funds will support the construction of a new €78 million manufacturing plant at its West Cork headquarters.
"The European Investment Bank is pleased to support new strategic investment by Carbery that demonstrates clear vision and resolve to continued international growth whilst addressing uncertainties related to Brexit," said Andrew McDowell, vice president of the European Investment Bank, responsible for agriculture and lending operations in Ireland.
The Dubliner cheese maker said that the proposed expansion will enable the company to diversify its range of cheeses and produce mozzarella for export to a range of international markets.
"Once complete, the new facility will significantly expand cheese production using milk from farms across West Cork.” McDowell added.
First Irish Investment
McDowell said that the long-term loan represents the first direct EIB support for investment in the Irish cooperative sector in 45 years and the first Irish investment under the EIB’s dedicated streamlined agriculture financing programme.
"The €35 million EIB backing, together with continued funding support from our other banking partners AIB, BOI, and Rabobank, will accelerate growth for Carbery and secure new markets for Irish dairy farmers," added Jason Hawkins, chief executive officer, Carbery Group, said;
That Carbery has secured the first ever European Investment Bank financing for an Irish Agri Foods business is a vote of confidence in Carbery and Irish agriculture.”
© 2019 Checkout – your source for the latest Irish retail news. Article by Donna Ahern. Click subscribe to sign up for the Checkout print edition.