The company has expanded since it was founded in 1938

It is part of a major expansion at the South Caernarfon Creameries (SCC) site near Pwllheli in Gwynedd.

The plant, which uses state-of-the-art packaging techniques, will safeguard the future of the firm's 170 employees.

The company has grown steadily since it was established in 1938 - it now boasts an annual turnover of �28m and supplies many leading UK supermarkets.

The new plant, which has been partly funded by money from the Welsh assembly and European Union, was opened by the firm's president, former Plaid Cymru leader Dafydd Wigley, on Thursday.

Development

The ceremony will be followed by two days of celebrations, in which members of the public will be invited to tour the new dairy and be given cookery demonstrations.

The firm's Chief executive Gareth Evans said SCC had developed "tremendously" in recent years.

Dafydd Wigley unveiling a plaque to mark the opening

"We have put great emphasis on utilising new technologies such as in the new milk packaging facility," he said.

Mr Evans added that SCC had worked with supermarket chains, including Tesco, Safeway, Morrisons and Marks and Spencer to build its markets.

"Supplying such large companies means a great deal to us and is an extremely important contribution to a rural economy like ours," he added.

Nearly 85% of the milk collected by SCC is used to make cheeses, which are exported to countries on mainland Europe and to the USA.

SCC is the only dairy co-operative in Wales which is still farmer-owned.

When it started more than 60 years ago, it had 63 members - it now has almost 200, and even boasts its own fleet of road tankers.