Milk processor Synlait will invest NZD 260 million ($188.9 million) to build a nutritional powder manufacturing site in New Zealand.
The company announced it has purchased 28 hectares of land in Pokeno, North Waikato, to construct what will be the company’s second powder manufacturing facility.
Synlait will grow its A2 Milk, and Lead with Pride programmes with farmers in Waikato as a part of establishing a new milk supply for Synlait Pokeno.
The first dryer at Synlait Pokeno is expected to replicate the specifications of dryer three from Synlait Dunsandel, which is an infant formula-capable spray dryer commissioned in late 2015 with an annual capacity of 40,000 metric tonnes.
Graeme Milne, Synlait chairman, said: “Our forecast increase in customer demand for infant formula products means we need to add additional powder manufacturing capacity as soon as we can.
“Our long-term infant formula supply agreements underpin this forecast demand and we have these in place with The A2 Milk Company, New Hope Nutritionals, Bright Dairy and Munchkin.”
Synlait CEO John Penno added: “We want to partner with dairy farmers who are excited to do more with their milk. A2 Milk and Lead with Pride are two of our special milk programmes and we’re really excited to bring these opportunities to the Waikato.
“As well as helping us to meet our forecast infant formula demand, we see Pokeno as an opportunity to balance our exposure to a single powder manufacturing site and single milk supply pool at Synlait Dunsandel in the South Island.”
He added: “We have built one of the world’s most sophisticated infant formula manufacturing sites in Dunsandel. With the addition of Pokeno, we will have a national portfolio of added-value capability to leverage for our future growth.
“Along with Synlait Auckland and our research and development centre in Palmerston North, we will have some of the most reliable, productive and modern capability globally to support our customers, categories and markets, as well as our value add strategy.”
Last month, Synlait announced it will become the exclusive dairy provider for supermarket Foodstuffs South Island alongside a $90.8 million investment in a new dairy production facility.
© FoodBev Media Ltd 2019