Wales’s South Caernarfon Creameries has won a £50m contract to supply cheese to Adams Foods from January.

The deal will run over three years and has prompted SCC to announce it will invest £10m in building a new cheese production facility in Chwilog, which it said would be ready by 2016.

The Adams Foods contract comes as SCC is set to stop processing liquid milk to focus on cheese and other dairy products. The company will continue to sell liquid milk under its Dragon brand, but the milk will be distributed by Cotteswold Dairy as of this Sunday (9 December).

MD Alan Wyn Jones said liquid milk had only ever been a small part of SCC’s business but exiting the market had nevertheless been a difficult decision. “We are delighted to be working with Cotteswold Dairy, who will continue to supply our valued and loyal customers with Welsh milk under our Dragon brand,” he said.

He added he was delighted to have secured the contract with Adams Foods. “We have been working on this contract for over a year and shall be starting to supply from the New Year,” he said. “This contract will give us the platform to further grow, develop and invest in our cheese business.”

Wyn Jones also issued a call to farmers to join the business, saying SCC had exciting plans for the future.