Leading dairy company FAGE has announced plans to build a new production facility in the Netherlands.
The € 150 million facility in Riegmeer Hoogeveen Business Park will initially provide an additional 40,000 tonnes of yoghurt per year, FAGE said, and will create 250 full-time jobs.
FAGE will install innovative equipment and technologies that it has also installed at its US plant. In this context, FAGE announced that it has signed an option contract for the 15 hectare site with the Municipality of Hoogeveen. The new manufacturing facility is expected to be operational in the second half of 2024, according to the state news agency. Amna.
For FAGE, building a plant in the Netherlands means easier access to the raw materials for its main product, dairy cow’s milk, as well as to Western European markets. However, for the Greek industry, this is likely to entail a reduction in production at FAGE’s facilities in the country and a reduction in the amount of milk the company purchases from Greek producers.
According to the latest available data from Eurostat, the Netherlands accounted for 9.6% of all fresh cow’s milk in the EU collected and sent to the dairy industry, behind only Germany (22.4%) and France (17%).
The new plant will be FAGE’s second overseas facility – the first dairy company built in 2008 in Johnstown, New York, where the famous Greek yogurt is produced. Today the company is active in 31 countries, with the most important markets being the USA, Great Britain and Italy.
Founded in 1926 in Athens by the Philipou brothers, FAGE has been headquartered in Luxembourg since 2012. It is one of the main dairy brands in Greece and produces dairy products including milk, yoghurt and ice cream. Total, the first commercial strained yoghurt, has received huge worldwide success as “Greek yoghurt”.
In October 2012 the company FAGE announced on the transfer of headquarters from Greece to Luxembourg. Reasons for the transition include more favorable tax conditions, better access to bank financing and less exposure to the Greek financial crisis.