The Welsh yogurt manufacturer Llaeth Y Llan (or Village Dairy) has expanded its production capabilities after securing a multi-million pound funding package from HSBC and the Welsh government.

The family-owned business has opened a new 2,500 sq ft dairy facility to enable it to increase manufacturing output, expand into new markets and grow its product range.

The expansion has already facilitated the introduction of a Llaeth Y Llan-branded multipack of smooth yoghurts targeting the children’s lunchbox market, which hits the shelves of Welsh supermarkets next month.

The Welsh Government has supported the project with £700,000 from the Wales Economic Growth Fund, whilst HSBC also supported with a £1.5m finance facility to develop the new unit.

The company is expanding its workforce as part of its expansion drive.

Owain Roberts, MD of Llaeth Y Llan CYF, said: “This is a very exciting time in the development of the company. The year has already started very positively with Llaeth Y Llan products becoming increasingly available in shops across Wales and England, and we have also recently started supplying to supermarkets in the United Arab Emirates.

“Securing funding from the Welsh Government and HSBC was critical for this project. We are also extremely grateful for the additional support we have received from the Welsh Government over the years, which has included business mentoring, training, attendance at trade exhibitions and introductions to commercial contacts. It has all helped to contribute to the continuous growth we are achieving’.

Llaeth Y Llan’s new production facility is based on the family farm in Llannefydd, North Wales where it has been since its inception in 1985.