Lactalis is investing 313m reais ($55.3m) to expand its dairy production facilities in Brazil’s Paraná state.
The investment comes as the France-headquartered dairy giant marks a decade of operations in the South American country, adding in a statement provided to Just Food that the capital infusion aims to bolster its “strong and responsible leadership in the country’s milk chain”.
Lactalis said the investment will fund a new UHT milk production line at its Londrina facility, and at the same time expand the Carambeí plant to boost output of yogurts, fermented milk, dairy beverages, and desserts.
The projects were formalised through agreements with the Paraná state government on 18 March, during a ceremony in Curitiba attended by Governor Ratinho Júnior and Lactalis’ CEO in Brasil, Roosevelt Junior, according to the statement.
According to the dairy group’s CEO,, Lactalis has invested over 710m reais in Paraná over the past decade.
Besides Londrina and Carambeí, Lactalis operates a plant in Paraná’s Pato Branco. The Carambeí facility is the largest, with 830 direct jobs, supported by 280 employees at Londrina and 36 at Pato Branco.
Just Food asked Lactalis to clarify if any jobs will be created from the investment and the reasons behind its latest cash injection to Brazil. The company would only say that the projects are expected to be completed by the end of December.
The latest investment follows a 250m reais expansion plan in Minas Gerais, announced in November, to modernise and expand seven factories in the state.
The company also operates logistics units in Contagem and an administrative office in Belo Horizonte, employing 3,654 people.
Additionally, in March, Lactalis announced a 100m reais investment in Rio Grande do Sul, targeting five plants in Teutônia, Tapera, Três de Maio, Santa Rosa, and Ijuí.
Lactalis, founded in 1933 and headquartered in Laval, France, owns brands such as Batavo, Président, and Elegê.
Beyond Brazil, Lactalis has been expanding elsewhere in South America.
Last month, Lactalis said it planned to acquire Uruguay-based Granja Pocha, which produces cheese and yogurt under the Colonial brand.
Granja Pocha manufactures its products in Juan Lacaze, Uruguay.
