Food group Glanbia predicts revenues from its lucrative pizza cheese division are set to rise at least €30 million this year with the unveiling of a €17 million upgrading programme yesterday.
The company, which posted an €8.1 million loss in 2002, says the introduction of new technology at its plant in Magheralin, Co Armagh, will consolidate its position as Europe's leading supplier of pizza cheese and forecast a 30 per cent increase on sales of €100 million.
The technology, which will improve efficiencies and quality, is patented by US company Leprino Foods, holder of a 49 per cent stake in Glanbia Cheese Ltd.
Even with extra capacity, Glanbia would be unable to keep pace with demand in a market forecast to grow 4 per cent over the next 12 months, a spokesman said.
The development was hailed as a boost to the North's dairy industry by enterprise minister, Mr Ian Pearson.
He added: "The introduction of these world-class manufacturing processes will help Glanbia Cheese to build on its strong market position, achieve sales growth and safeguard its long-term viability for both employees and Northern Ireland milk suppliers."
Glanbia recently said it planned to spend up to €100 million on acquisitions in the nutritional market in the short term. Revenues from nutritional products climbed 17 per cent last year amid growing consumer demand for healthy convenience products such as energy bars.
In February, Glanbia established a joint venture in Mexico to exploit emerging markets in Latin America and Africa. It entered into an agreement with Conaprole, a Uruguayan dairy, to develop dairy ingredient sales in both markets. Both firms are believed to have invested around €4 million in the venture.
