The investment will transform an existing Allentown facility into a major food production hub and is expected to create more than 900 jobs over the next five years
Allentown, Pennsylvania, 2 September 2026 – Chobani is taking a major step forward in its U.S. expansion with a planned $1.2 billion investment in Pennsylvania. The dairy and food company plans to take over a large manufacturing facility in the Lehigh Valley and develop it into an important center for its next phase of growth.
The project is expected to create more than 900 full-time jobs over the next five years and significantly increase demand for milk from Pennsylvania dairy farms. According to state officials, the investment represents the largest private investment ever made in Pennsylvania’s agriculture industry.
At the center of the project is a 1.5 million square foot manufacturing and warehouse facility in Upper Macungie Township near Allentown. The site first began production in 2021 and will now become part of Chobani’s expanding manufacturing network.
Chobani plans to invest approximately $1.2 billion at the site over the next five years, adding new equipment, technology and production capabilities. The company says the facility will support the development of new food products and expand its ability to serve consumers across the country.
One of the most significant parts of the investment is its expected effect on Pennsylvania’s dairy industry. When the facility reaches full production, it is expected to process more than 3 billion pounds of Pennsylvania milk each year. That amount is equivalent to roughly 30% of the milk currently produced in the state.
For local dairy farmers, the additional demand could create a larger and more stable market for their products. Pennsylvania has thousands of dairy farms, many of which are family-owned. Increased processing capacity can help connect these farms more directly with large-scale food manufacturing.
The project is also expected to strengthen the wider agricultural supply chain. More dairy production can generate business for transportation companies, equipment providers, packaging suppliers, food processing businesses and other companies connected to the industry.
To support the expansion, Pennsylvania plans to provide Chobani with $50 million in loans and grants through the Pennsylvania Strategic Investments to Enhance Sites program. The state also plans to make $127 million in loans and grants available to eligible dairy farmers to help them respond to the expected increase in demand.
The investment follows Chobani’s broader expansion in the food and beverage market. The company acquired Philadelphia-based coffee company La Colombe for $900 million in 2023 and has continued developing its presence beyond its traditional yogurt business.
Chobani founder and CEO Hamdi Ulukaya has described the Pennsylvania facility as a strong foundation for the company’s future. The company intends to use the site not only for traditional dairy production but also to develop new food products.
Production under the Chobani name is expected to begin in 2027. Existing employees at the facility will be considered for continued employment, while other workers are expected to receive opportunities to join the company as operations transition.
The company is also planning an expansion at its Norton Shores, Michigan facility, which produces La Colombe beverages. Together, these investments demonstrate Chobani’s focus on expanding its manufacturing capacity and building a larger U.S. production network.
For Pennsylvania, the project represents an important development for agriculture and food manufacturing. For Chobani, it provides additional production capacity, access to a strong dairy farming base and a strategically located facility close to a large portion of the U.S. population.
The investment ultimately highlights how modern food manufacturing can connect large-scale business expansion with local agriculture. As Chobani develops the Allentown campus, the project could bring new opportunities for workers, farmers and suppliers while strengthening Pennsylvania’s position as a major U.S. food production hub.
