Australian dairy ingredients maker Burra Foods has announced its biggest expansion project since 2011 as the company invests AU24.5m (US$18.7m) on a new infant formula blending and canning plant.
The company said that the factory, located in Korumburra, Victoria, is “further sign of our confidence in the industry and our ability to succeed in the category.”
The factory will also include warehouse facilities and create 39 jobs with building work to start in the first quarter expected to be completed by late 2019.
With the new plant, Burra Foods plans to shift production of milk powder from bulk 25-kilogram bags to consumer packs in 400 and 800 gram cans suitable for export markets such as China. It will also enable the company to increase production of other powdered milk products including adult, student and pregnancy powders, and high-protein skimmed and full-cream milk.
China’s Inner Mongolia Fuyuan Farming Co, an international dairy firm which is part of Mengniu Dairy, is a majority shareholder in Burra Foods.
The expansion will allow Burra Foods to export tins of formula direct to the Chinese market, removing the need to can and label products offshore, according to the statement.
© FoodBev Media Ltd 2024