Kentucky Dairy Product Innovations will invest nearly $4 million to open a dairy processing plant in London, Kentucky. The facility will develop a low-calorie, lactose-free skim milk, produced exclusively from Kentucky cows. The firm has entered into a lease-purchase agreement to acquire a 12,000-square-foot facility in the London-Laurel County Industrial Park off Route 80.

“Through the use of our patented processing technologies, our product will contain all of the nutrients found in milk, but none of the calories associated with lactose,” said KYDPI President Matthew Clark.

The company, which expects to be operational by the end of the year, plans to hire up to 20 employees. The company will join the $1.7 billion worldwide lactose-free skim milk market. Its product will be formulated by dairies and manufacturers into new recipes to attract more health-conscious consumers. KYDPI’s initial customer will be FIZZA LLC, also based in London. FIZZA is a sparkling dairy nutrient beverage approved by the USDA for sale at middle and high schools across the country.

This new beverage is being co-packed by the Prairie Farms Dairy of Somerset, and is being initially introduced into the retail space by Shaw’s Supermarkets of New England, which has 80 stores, as well as into select 113 national middle and high schools in September of this year.

“I want to thank Kentucky Dairy Product Innovations for locating this high-tech startup in Kentucky,” Governor Steve Beshear said. “KYDPI promotes a healthy lifestyle, which is something we strive for here in the Commonwealth. I look forward to seeing consumers around the country enjoying this revolutionary product.”

“The city of London welcomes Kentucky Dairy Product Innovations,” said London Mayor Troy Rudder. “We are pleased that KYDPI is choosing to invest in our community by creating new jobs and that Kentucky dairy farmers will be a key part of this new process.”

“I applaud KYDPI for their decision to invest in southeast Kentucky,” said Roger Thomas, Executive Director of the Governor’s Office of Agricultural Policy. “This partnership will create additional opportunities for our dairy farm families with the new markets developed by KYDPI.”

To encourage the investment and job creation in London, the Kentucky Economic Development Finance Authority preliminarily approved the company for tax incentives up to $200,000 through the Kentucky Business Investment program. The performance-based incentive allows a company to keep a portion of its investment over the term of the agreement through corporate income tax credits and wage assessments by meeting job and investment targets.

KYDPI also received financing from Kentucky Highlands Investment Corporation. KHIC provides financial support to entrepreneurs to encourage small business growth and job creation in eastern Kentucky.

“Kentucky Highlands is here to help provide capital and business resources to any business wanting to start or grow in southeast Kentucky,” said Jerry Rickett, President of KHIC. “KYDPI is a perfect example of how multiple resources can be brought together to strengthen a business opportunity.”