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Dairy maker Chobani is investing $1.2 billion to build a dairy production facility in Pennsylvania that’s projected to create 900 jobs over the next five years.

The New York-based company has been expanding its presence in the commonwealth. In 2023, it acquired Philadelphia-based coffee roasters La Colombe for $900 million, with the company expected to retain its independence and management.

Chobani’s investment is the largest ever private investment in the state’s agriculture industry, according to a release from Gov. Josh Shapiro’s office. It will produce nearly 3 billion pounds of milk a year.

“Pennsylvania is aggressively competing for — and winning — the biggest economic development projects in the country because we’re making strategic investments, moving at the speed of business, and giving companies confidence that they will thrive here – and I’m proud this investment will benefit our dairy industry and rural communities,” Shapiro said in a statement.

The 1.5 million-square-foot facility in Allentown first opened in 2021 and sits within 500 miles of roughly 40% of the U.S. population. Chobani founder and CEO Hamdi Ulukaya said Pennsylvania produces “some of the best milk in America.”

“When I first walked through this factory, I knew there was something special here,” Ulukaya said in a statement. “The facility, the equipment, the scale, but most importantly, the people. There’s already an incredibly talented team here that knows how to make great food. The foundation is strong. And we have an opportunity to build something extraordinary on top of it.”

Pennsylvania will provide Chobani with $50 million in loans and grants through the Pennsylvania Strategic Investments to Enhance Sites, or PA SITES, program.

The state will also make $127 million in loans and grants available to eligible dairy farmers to help them meet the expected increase in demand for dairy products.

Some current employees will be retained at the facility, while all others will receive offers to join Chobani. Production under the corporate banner is expected to start next year.

In addition to the Allentown investment, Chobani will expand its Norton Shores, Michigan facility, which produces La Colombe beverages.