Dairy Farmers of Britain has completed a £3m factory extension at its Bridgend dairy to allow retailers in the principality to stock more locally produced milk.
The Bridgend facility is now the only major dairy sourcing and processing milk in Wales. The investment includes the installation of a state-of-the-art milk bottling line, a cold store and milk processing and finished milk storage facilities.
The expansion is part of a number of developments by DFB that have seen capacity rise threefold to 165 million litres since October 2006, with plans to increase this to 230 million litres.
The plant's biggest customer is Spar, but it also supplies Londis, Asda, The Co-operative Group and Tesco with brands including Cadog and Tesco's Welsh localchoice milk.
"Wales is a key market and the investment is an example of our commitment to Welsh farmers and Welsh consumers," said Dairy Farmers of Britain chairman Rob Knight.