HP Hood LLC, Lynnfield, Mass., announced plans to acquire a Batavia, N.Y., processing plant formerly owned by Dairy Farmers of America (DFA), Kansas City, Kan.
The plant, which was originally constructed by Muller-Quaker to process yogurt, was later purchased by DFA in 2016. HP Hood will invest more than $200 million over several years and create 230 new jobs over five years.
“We originally made a strategic decision to purchase this plant, as it’s in an important milk shed for the industry and this area,” says Rick Smith, president and CEO of DFA. “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.”
“We are fortunate that our need for more capacity coincided with an opportunity to expand our capabilities in the great state of New York,” adds John Kaneb, president and CEO of HP Hood. “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.”
Hood will repurpose the 363,000-square-foot, idle state-of-the-art processing facility to produce extended shelf-life beverages. The company will also construct a 100,000-square-foot refrigerated warehouse.
Hood plans to commence construction this summer and begin operation by the second quarter of 2019.