Chobani Commits $1.2 Billion to Expand Pennsylvania Dairy Manufacturing

2026-09-02 companies

Allentown, Tuesday, 1 September 2026.
Chobani is investing $1.2 billion in Pennsylvania to establish a dairy plant creating 900 jobs. Remarkably, the facility will process 30% of the state’s total annual milk production.

Strategic Investment Overview

Chobani has announced a $1.2 billion investment to establish a new dairy manufacturing facility in Pennsylvania [1][2]. The announcement was made on Tuesday, 1 September 2026, by Governor Josh Shapiro and Chobani CEO Hamdi Ulukaya [1][3]. The facility will be located at 7356 Industrial Boulevard in Upper Macungie Township, Lehigh County [3][5]. This capital expenditure plan signals significant growth in domestic food manufacturing and regional economic momentum [1][4].

Strategic Investment Overview

The project is expected to create 900 full-time jobs over the next five years [2][3]. This capital expenditure translates to a significant investment per role, calculated as 1.333 million per job [5][8]. The company plans to spend the money over the next five years on the 1.5-million-square-foot manufacturing and warehouse campus [7][8]. Chobani has grown approximately 20 percent annually over the past three years, giving the company confidence to continue investing in its future [7][8].

Economic and Agricultural Impact

When fully operational, the facility will process more than three billion pounds of Pennsylvania milk annually [3][6]. This volume is equivalent to approximately 30% of all milk currently produced in the state [1][6]. Production at the facility is expected to begin in 2027 [1][6]. The initiative aims to support over 4,000 dairy farmers in Pennsylvania [3][5].

Economic and Agricultural Impact

Pennsylvania’s agriculture sector contributes over $132 billion annually to the economy and supports nearly 600,000 jobs across 48,800 farms [3][8]. The investment reinforces faith in dairy farmers and manufacturers, and the role they play in moving the economy forward [3][8]. Chobani’s investment in Pennsylvania is an investment in the 4,300 family-owned dairy farm businesses across the Commonwealth [8][5].

Government Incentives and Support

To support this project, the Pennsylvania government will provide $50 million in loans and grants via the Strategic Investments to Enhance Sites Program for infrastructure and site improvements [3][5]. The state has committed $127 million in loans and grants for eligible Pennsylvania dairy farmers to meet increased demand for milk products [3][8]. The Shapiro Administration’s BusinessPA team facilitated the project [5][8].

Government Incentives and Support

Chobani may access future tax credits through the Pennsylvania Milk Processing Tax Credit program [3][5]. Governor Shapiro has secured over $43 billion in private sector investments since taking office, resulting in nearly 27,000 new jobs [8][5]. Pennsylvania is aggressively competing for and winning the biggest economic development projects in the country [8][5].

Site History and Future Operations

Chobani will occupy the existing 139,355 m² (1.5 million-square-foot) Keurig Dr Pepper facility [1][2]. The location was formerly a Kraft Heinz factory that closed in 2016 and contains a 92-acre manufacturing facility built by Keurig Dr Pepper in 2019 [3][7]. Chobani will acquire Keurig Dr Pepper’s manufacturing facility and warehouse, including its equipment and related infrastructure [7][8].

Site History and Future Operations

Production at the facility is expected to begin in 2027 [1][6]. Hamdi Ulukaya, Founder and CEO of Chobani, stated, “We’re so happy to be here bringing our future innovation to life in Allentown, made with fresh Pennsylvania milk and delivered to families across the country” [2][5]. The company plans to manufacture innovative food products beyond yogurt at the new site [2][6].

Sources

Manufacturing Investment Chobani