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- Release Date: 11/12/13 10:30
- Summary: GENERAL: FSF: Fonterra Explands Milk Processing in Lower Nth Island
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FSF
11/12/2013 08:30
GENERAL
REL: 0830 HRS Fonterra Shareholders' Fund (NS)
GENERAL: FSF: Fonterra Explands Milk Processing in Lower Nth Island
FONTERRA EXPANDS MILK PROCESSING IN LOWER NORTH ISLAND
Fonterra today announced Board approval for a $235 million investment into a
new high-efficiency milk powder plant at its Pahiatua site in the Manawatu.
The new drier will enable the dairy Co-operative to process an additional 2.4
million litres each day.
Fonterra's Director of NZ Operations, Robert Spurway said the Co-operative's
continued investment in milk powder driers was to meet the growing demand for
dairy nutrition globally and demonstrated Fonterra's strategy of optimising
its New Zealand milk business.
The announcement of the investment at Pahiatua comes less than a week after
the Co-operative celebrated opening the world's largest milk powder drier at
its newly completed site at Darfield in Canterbury.
"This new drier in Pahiatua will help drive greater efficiencies across our
manufacturing footprint. Last season we set a new record for the most milk
collected in one day and overall milk production has been increasing by
roughly three per cent each year. This drier will help us process the extra
milk in a way that delivers the most value to our farmers.
The demand for dairy nutrition around the world, especially for whole milk
powder, is increasing. Our expansion at Pahiatua will ensure that Fonterra
has the capacity to meet this demand and to process the continued growth of
milk supply in New Zealand," said Mr Spurway.
Mr Spurway said Pahiatua's new drier will use the latest energy-efficient
processing technology and be the first in the country to reuse its own
condensate. The wastewater it creates will also be treated and used for
irrigation.
Tararua Mayor Roly Ellis said Fonterra's announcement was exciting news for
the community and would create new opportunities for local residents.
"This expansion will mean another 45 full-time jobs for the local community.
That's on top of the hundreds of builders, labourers and others who will be
working during the construction phase.
"Fonterra's investment and the possible construction of the Ruataniwha dam is
good news for our local dairy industry and will provide a welcome economic
boost for the region."
Preliminary earthworks have begun at the site and construction of the drier
and associated infrastructure will start in mid-December.
The first milk powder from the new drier is expected to roll out of the site
by September 2015.
End CA:00244976 For:FSF Type:GENERAL Time:2013-12-11 08:30:04
