New Zealand milk processor Synlait will establish a new research and development centre on the country’s North Island to help extend its expertise and capabilities in food technology.
The new centre in Palmerston North will concentrate on new product development, process technology and packaging.
Synlait CEO and managing director John Penno said: “Our goal is to become more profitable and diversified. Investing in our own research and development centre is an opportunity to explore new and unique ways to make the most from milk.
“We will be developing intellectual property across our value chain, which aims to maximise value at every step – beginning behind the farm gate all the way through to providing market access for our customers.”
The exact investment in Palmerston North has not been disclosed, but Synlait intends to commit around NZD 7 million ($5 million) in its R&D function.
“We are serious about growing our research and category development capability, and plan to double our investment over the next two years,” Penno said.
“Our investment in Palmerston North is a major milestone on this journey.
“This is the first step for us as we progress towards new products, categories and markets in the future. We will need our capability in this area to continue evolving so we stay ahead of the game.”
The news comes after Synlait announced its results for the full-year to the end of July. Revenue rose 39% to NZD 759 million ($552.9 million), with net profit after tax of NZD 38.2 million ($27.8 million).
Roger Schwarzenbach, general manager of innovation and technical services for Synlait, continued: “We will have access to some of the best scientific, technical and commercial minds and equipment in this field.
“It’s the perfect environment for our new team to explore options for diversifying our business, both at a product and process level.”
The centre will initially employ food technologists and engineers, who will work closely with colleagues at Synlait’s Dunsandel facility and have access to some of the industry’s most sophisticated equipment and processing technology.
“As one of New Zealand’s fastest-growing companies, our people have the opportunity to directly impact decisions we make,” Schwarzenbach continued. “We will recruit a team in Palmerston North who aren’t afraid of a challenge and really want to make their mark.”
And Penno concluded: “This centre will have a real impact on Synlait’s future. The team will help us launch new high-returning dairy categories, bring new product options to market and contribute to ever-improving product quality.”
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