Long Clawson Dairy is to spend £6.5m on expanding its Leicestershire facility to meet growing overseas demand for Stilton.
The expansion will allow Britain's biggest Stilton producer to increase production by 25% within four years. The additional capacity would allow it both to produce more and develop new cheeses, according to Long Clawson chief executive Martin Taylor.
The expansion will comprise an upgrade to services around the site, the construction of a rear entrance road, the expansion of the main building and the installation of new plant and equipment. The project, which will create 12 new jobs, will save the dairy 34 million litres of water a year once complete. Work will start next month and continue for four years.
The East Midlands Development Agency has contributed a grant of £2.5m and Long Clawson has funded the remaining £4m itself.
Although UK demand for Stilton was expected to remain relatively stable in the coming years, with an annual growth rate of about 2% or 3%, the company was experiencing a "massive increase" in export demand, said Taylor.
Stilton production capacity was currently "maxed out", he added. "The expansion will enable us to fulfil growing demand for Stilton worldwide and to develop new products, penetrate new markets and create jobs locally as well as enabling us to make significant savings on our water and electricity resources."
The expansion is a boost for Long Clawson, which posted a £2.8m operating loss in the 15 months to 31 March 2009 as a result of consumers downtrading during Christmas 2008 and costs associated with the Competition Commission investigation into its purchase of Hartington Creamery.
However, Christmas 2009 had been Long Clawson's "biggest ever year" and the company was progressing well and was ahead of plan, said Taylor.
Clawson produces 6,700 tonnes of cheese per year, and exports 1,000 tonnes to 36 countries.
The expansion will allow Britain's biggest Stilton producer to increase production by 25% within four years. The additional capacity would allow it both to produce more and develop new cheeses, according to Long Clawson chief executive Martin Taylor.
The expansion will comprise an upgrade to services around the site, the construction of a rear entrance road, the expansion of the main building and the installation of new plant and equipment. The project, which will create 12 new jobs, will save the dairy 34 million litres of water a year once complete. Work will start next month and continue for four years.
The East Midlands Development Agency has contributed a grant of £2.5m and Long Clawson has funded the remaining £4m itself.
Although UK demand for Stilton was expected to remain relatively stable in the coming years, with an annual growth rate of about 2% or 3%, the company was experiencing a "massive increase" in export demand, said Taylor.
Stilton production capacity was currently "maxed out", he added. "The expansion will enable us to fulfil growing demand for Stilton worldwide and to develop new products, penetrate new markets and create jobs locally as well as enabling us to make significant savings on our water and electricity resources."
The expansion is a boost for Long Clawson, which posted a £2.8m operating loss in the 15 months to 31 March 2009 as a result of consumers downtrading during Christmas 2008 and costs associated with the Competition Commission investigation into its purchase of Hartington Creamery.
However, Christmas 2009 had been Long Clawson's "biggest ever year" and the company was progressing well and was ahead of plan, said Taylor.
Clawson produces 6,700 tonnes of cheese per year, and exports 1,000 tonnes to 36 countries.
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