South Caernarfon Creameries expands cheese production

Alan Jones (left) said the firm had decided to focus on the development of Welsh cheese and butter

Wales' oldest and largest dairy co-operative is expanding its cheese production facilities with the help of a £1m loan.

South Caernarfon Creameries first started operating at the site near Pwllheli in 1937. It will use the money to modernise its production facilities.

The firm will also increase its first phase capacity from 9,500 to 11,500 tonnes a year.

The loan comes from the Wales Capital Growth Fund, managed by Finance Wales.

Managing director Alan Jones said: "We reviewed our business model in 2010 and decided to focus on the development of our core products of Welsh cheese and butter.

"Our Dragon branded cheese is the leading Welsh brand and is available in most UK supermarkets. This investment to develop our facilities is required to further grow the brand as well as to enable us to develop other market opportunities."