UK-based Dairy Crest is planning to expand its milk processing plant at Davidstow, Cornwall, with an investment of £40m.
The company plans to use the whey generated during the production of cheese at the Davidstow creamery to produce demineralised whey powder for baby formula. The facility currently manufactures Cathedral City cheddar cheese.
The Davidstow plant employs about 119 people. Dairy Crest has been manufacturing cheddar at Davidstow for the past 60 years and sources milk from over 400 local farmers.
Dairy Crest stated that it would reveal further details of the project in September.
Dairy Crest chief executive officer Mark Allen said: "We are also making good progress with new projects to increase the returns we get from whey and move into other added value products."