Do you understand growth? Clearly not. Once Lots 8 and 9 are exercised and production hits full capacity you will be crying in a corner somewhere!
To further enhance the medium term capacity needs of the Company, Keytone Dairy exercised itsoption to acquire the land known as “Lot 5” in the Izone Southern Business Hub in Christchurch, NewZealand during the FY19 year. Consequently, in addition to operating its existing manufacturing facility,the Company now owns three blocks of industrial land in Izone, being Lots 8, 9 and 5. As discussedabove, the Company is well-advanced with the construction of the second manufacturing facility on Lot8.The option over Lot 5 has been exercised to enable the Company to:• utilise additional land for further capacity roll out, as the Company develops its product range;• facilitate the future potential of a larger integrated and purpose-built manufacturing facilityacross three owned blocks of land (each adjacent to the other) with multiple road access points, allowing for seamless drive-through distribution logistics (in addition to the Company’sexisting facility); and• achieve economies of scale.
Good luck to you PipNinja
KTD Price at posting:
58.5¢ Sentiment: Hold Disclosure: Held
