Dairy company Chobani announced plans Tuesday to invest approximately $1.2 billion in a manufacturing and warehouse hub in Allentown, a project the New York-based company said will create more than 900 jobs over the next five years.
Chobani’s Lehigh Valley expansion is the largest ever private investment in the state’s agriculture industry, according to Gov. Josh Shapiro.
“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 expansion into the Lehigh Valley will see Chobani assuming operations of Keurig Dr Pepper’s manufacturing facility in Upper Machine Township. The company expects to produce approximately 3 billion pounds of milk per year (about 30% of all milk produced in the state) there, in addition to developing and manufacturing food products beyond yogurt.
The state will provide $50 million in grants and loans for infrastructure improvements needed at the site. Additionally, the state is also giving $127 million in loans and grants to dairy farmers to help them expand herds, buy equipment, and meet the new milk demand, Shapiro said Tuesday.
Chobani already has a presence in Pennsylvania, having acquired Philadelphia-based coffee roasters La Colombe in 2023.
