Glanbia is to create 1,600 new direct and indirect jobs in the South-East of the country over the next 5 years.

450 others will be hired during the 3-year construction phase of a new facility in Belview on the border between Kilkenny and Waterford.

The investment is estimated to be worth €400 million a year to the local economy. It is supported by the government and Enterprise Ireland.

The diary plant is expected to be open in Spring 2015. Products produced at the facility will be exclusively for the export market.

Glanbia Ingredients Ireland Limited (GIIL) processes 1.6 billion litres of milk - or 30% of the Irish milk pool - into a range of dairy ingredients for export to more than 50 countries.

'Major strategic significance'

Welcoming the announcement Taoiseach Enda Kenny said "The Government is delighted to support GIIL's significant investment in the Irish dairy industry as it represents a massive vote of confidence in Ireland and our agri-food sector...Creating new jobs remains the top priority for Government and today GIIL is announcing that it will generate over 1,600 direct and indirect jobs by 2018 and an additional 450 during the construction phase".

Jobs Minister Richard Bruton described the support of Enterprise Ireland as of 'major strategic significance', adding "This is a model of what we are trying achieve through our plan – an Irish company investing in a world-leading facility to produce for export markets and creating large numbers of jobs in a rural area".

While the Minister for Agriculture Simon Coveney commented "A vision for the sector is being delivered by industry and is being supported by coherent Government action to improve efficiency and reduce on farm costs, to demonstrate Ireland’s sustainable production systems, to provide critical assistance to develop new products that will add value to top class Irish raw materials, and to improve competitiveness at processing level".