Germany’s KfW IPEX-Bank has agreed to provide funding to Norway-based dairy co-operative Tine for the construction of a plant in Ireland.

Under the agreement, KfW IPEX-Bank will provide €50m ($58m) towards the total investment of €77m ($89m).

The dairy facility will be used for the production of the traditional Norwegian Jarlsberg cheese. It will be built in cooperation with the Irish company Dairygold at Mogeely, County Cork.

Tine added that the environmentally friendly production unit will be equipped mostly with processing equipment sourced in Europe.

Upon completion, it will have the capacity to produce nearly 20,000t of Jarlsberg cheese on an annual basis which will be distributed in the European markets.

“We are contributing to enhancing the competitiveness of European companies in the global markets.”

It will also be exported to various parts of the globe including Australia, Canada and the US.

The financing provided by KfW IPEX-Bank is expected to support several exporters in the European region.

KfW IPEX-Bank management board member Markus Scheer said: “By supporting our esteemed business partner of many years, TINE SA, with its forward-looking international investment, we are contributing to enhancing the competitiveness of European companies in the global markets.”

In July, Tine Ireland announced plans to build a new Jarlsberg cheese production facility and administration building in Mogeely, County Cork.

Tine is said to be one of the largest dairy cooperatives and food producer in Norway.

The company produces, distributes and exports dairy products with 11,400 members and 9,000 cooperative farms and has several wholly and partially owned subsidiaries in Norway, as well as internationally.