Munich: Global dairy major Lactalis has announced a €50 million (approximately US$57 million) investment to expand its manufacturing facility in Neuburg, Bavaria, strengthening its production capacity for quark and whey as part of the company’s long-term European growth strategy.
The investment is aimed at transforming the Bavarian plant into one of the company’s key dairy processing hubs in Germany, with significantly higher production volumes and enhanced operational efficiency by 2030.
Expansion to Strengthen Production Capacity
The project will introduce new high-capacity production lines dedicated to quark, a fresh dairy product widely consumed across Europe, while increasing the generation of whey, an important co-product used in food, nutrition and sports supplement industries.
Once the expansion is completed, the Neuburg facility is expected to produce annually:
- 40,000 metric tonnes of quark
- 104,000 metric tonnes of whey
- Approximately 308,000 metric tonnes of total dairy products
The expansion represents one of Lactalis’ major manufacturing investments in Germany in recent years and reflects growing demand for value-added dairy products across European markets.
Plant to Operate Around the Clock
To support the planned increase in production, the Neuburg dairy plant will move to a continuous 24-hour manufacturing schedule, operating under a three-shift system, seven days a week.
The company also plans to recruit around 70 additional employees, strengthening its German workforce, which currently comprises approximately 1,300 staff across six production sites.
Industry analysts note that continuous processing enables dairy manufacturers to improve plant utilisation, reduce operating costs and maximise production efficiency.
Part of a Wider European Modernisation Strategy
The German investment forms part of Lactalis’ broader industrial transformation programme focused on upgrading manufacturing infrastructure across Europe.
Last year, the French dairy group unveiled a €1 billion investment plan to modernise its production facilities in France through 2030.
The multi-year programme includes investments in:
- Advanced dairy processing technologies
- Automation and digital manufacturing
- Equipment modernisation
- Energy efficiency improvements
- Decarbonisation initiatives
Several French production sites, including those at Larceveau, Bouvron, and Bayeux, are undergoing expansion and technological upgrades under the programme.
Focus on Sustainability and Innovation
The latest investment reflects Lactalis’ strategy of combining production growth with greater environmental sustainability.
Modern processing equipment is expected to improve manufacturing efficiency while reducing energy consumption and supporting the company’s long-term carbon reduction objectives.
Across the global dairy industry, processors are increasingly investing in automation, digital technologies and resource-efficient production systems to improve competitiveness while meeting evolving sustainability standards.
Expanding Beyond Traditional Dairy
Alongside strengthening its manufacturing network, Lactalis continues to diversify its product portfolio through strategic acquisitions.
Recently, the company acquired Protein Works, a United Kingdom-based sports nutrition brand specialising in protein powders, ready-to-drink shakes and nutrition bars.
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The acquisition expands Lactalis’ presence in the fast-growing health and wellness segment, complementing its traditional dairy product portfolio with functional nutrition offerings.
Portfolio Optimisation Continues
The investment in Germany follows a broader review of Lactalis’ global manufacturing footprint.
As part of this strategy, the company streamlined operations in several international markets, including the closure of one of its Australian production facilities last year, while redirecting investments toward higher-growth and strategically important manufacturing locations.
Industry observers say this approach reflects a growing emphasis on operational efficiency, value-added dairy products and long-term competitiveness in an increasingly dynamic global dairy market.
Outlook
Lactalis’ €50 million investment in Bavaria underscores the company’s confidence in the future growth of Europe’s dairy processing industry.
With increased production capacity, modern manufacturing technology and expanded employment, the Neuburg facility is expected to play a significant role in meeting rising demand for fresh dairy products and dairy ingredients over the coming years.
The project also highlights a broader industry trend in which leading global dairy companies are investing in advanced processing infrastructure, sustainability initiatives and premium product segments to strengthen their position in an increasingly competitive international market.
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