Danone-Unimilk to expand Labinsk facility

Danone-Unimilk, the Russian subsidiary of French dairy company Groupe Danone, plans to invest RUR2.2bn ($71.4m) in the expansion of its Labinsk facility.

Danone-Unimilk spokesperson said that the plant will process up to 180t of milk a day and this capacity would eventually be increased to around 250t of milk a day.

The site, which currently processes milk, yoghurt and cottage cheese under the Prostokvashino and Letniy Den brands, also plans to manufacture baby food.

The investment will help the company to meet the growing demand for dairy products in southern Russia.

Danone merged its Fresh Dairy Product businesses in the CIS area with those of Russian company Unimilk in June 2010, consequently giving Danone access to markets in Russia, Ukraine, Kazakhstan and Belarus.