Yogurt giant Chobani is investing $1.2B in Pennsylvania's Lehigh Valley region over the next five years as the company adjusts its relationship with a major investor.
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The company announced Tuesday it is making the $1.2B investment in a 1.5M SF manufacturing and warehouse campus in Allentown, where it plans to house 10 production lines and create 900 jobs.
Chobani spent $125M to acquire the facility at 7356 Industrial Blvd. in Upper Macungie Township from Keurig Dr Pepper, Reuters reported.
Once it is fully operational, the facility will process 3 billion pounds of milk from across the commonwealth, which will be a major boost for Pennsylvania dairy farmers, according to a release from Gov. Josh Shapiro’s office.
“Pennsylvania is home to one of the highest number of family-owned farms in the country,” Chobani CEO Hamdi Ulukaya said in a statement. “When we walked into this factory, we knew it was a great fit for what we want to build for the future.”
The project will be part of Shapiro’s FastTrack program designed to streamline the permitting process.
Keurig Dr Pepper’s sale of the warehouse to Chobani came as the beverage giant sold back $800M of equity to the yogurt manufacturer.
Chobani will continue to manufacture some KDP products at the facility, and KDP will continue to distribute ready-to-drink La Colombe products. Chobani acquired the Philadelphia-based coffee chain for $900M in 2023. It operates cafes across the U.S., including five in the Philly area, according to its website.
The Lehigh Valley region has seen a major wave of industrial investments this year.
Pet food manufacturer Freshpet signed a lease for a 216K SF cold storage warehouse in Bethlehem last month.
Days later, a similar company called Spot & Tango announced plans to spend $20M doubling the capacity of its manufacturing facility in Upper Macungie.
Eli Lilly and Co. in January announced plans to build a 925K SF, $3.5B manufacturing plant in Upper Macungie focused on weight loss drugs and injectables in January.
Nokia in June shared plans to spend $30M expanding an existing chip facility in Upper Macungie.
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