Fonterra Brands Lanka announced yesterday it is investing LKR1.2 billion to significantly expand its yoghurt manufacturing capacity and treble its supply of raw milk.
Fonterra Brands Lanka Managing Director Achyut Reddy made the announcement during a Foundation Laying Ceremony at the company’s Biyagama site to mark the start of the project.
Reddy said the project, to be phased over the next three years, reflects the importance of the Sri Lanka market in Fonterra’s global operations.
“This is one of Fonterra’s largest off-shore investments and underpins our confidence in the future of the market, and the opportunities to grow in tandem with the Sri Lanka dairy industry.”
Reddy said the investment to be funded from capital within the business, will more than double the plant’s production capacity requiring an estimated 52,000 litres of raw milk per day.
“The project will include Fonterra establishing new raw milk collection centres throughout the country to as