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HP Hood to add 230 new jobs at former Müller Quaker facility

FBR Staff Writer Published 13 July 2017

Dairy company HP Hood is planning to invest more than $200m in an idled yogurt production facility in western New York.

Hood’s investment will be spread over the next five years and is expected to create 230 new jobs in the region.

New York Governor Andrew Cuomo announced the sale of the former Dairy Farmers of America (DFA) facility in the Genesee Valley Agri-Business Park in Batavia to HP Hood.

The plant, which was originally built by Muller-Quaker to process yogurt, was later purchased by DFA, a national, farmer-owned dairy cooperative in 2016.

DFA president and CEO Rick Smith said: “We originally made a strategic decision to purchase this plant, as it’s in an important milk shed for the industry and this area.

“Our primary goal was to ensure that this facility remained active in dairy for the long term. We explored opportunities with more than a dozen dairy companies and think HP Hood is a great fit to serve the local milk shed and community.”

Hood intends to repurpose the 363,000ft² facility to manufacture extended-shelf-life beverages and also build a 100,000ft2 refrigerated warehouse.

The dairy company is aiming to break ground this summer and hoping to commence operations by the second quarter of 2019. It has revealed that 524 jobs are expected to be created during the construction job with a payroll investment of around $26m.

Hood’s expansion plans will be supported by a $2m capital grant from the Upstate Revitalization Initiative and a grant of up to $5m by Empire State Development among others.

HP Hood president and CEO John A. Kaneb said: “We are fortunate that our need for more capacity coincided with an opportunity to expand our capabilities in the great State of New York.

“We have been welcomed by a resourceful and business savvy team at the Genesee County Economic Development Center and we look forward to becoming a supportive member of the local community and an employer of choice.”

The Batavia dairy facility will become the fifth processing plant in New York State for Hood. Its other plants in the state in Vernon, Lafargeville, Oneida and Arkport manufacture fluid and cultured dairy products like milk, cottage cheese, sour cream and cream.

Image: New York Governor Andrew M. Cuomo announced HP Hood’s investment in the state. Photo: courtesy of New York State Government/ governorandrewcuomo.