Danone spends $25m on plant
French global food company Danone has completed a $25 million upgrade of its blending and milk processing plant in Auckland, cementing New Zealand as a critical supply point for its markets.
The upgrade doubles the company’s production capacity so it can meet growing demand for its infant formula business. Danone bought a spray dryer at Balclutha and its blending, packing and canning plant at Airport Oaks in Auckland in 2014.
The company operates 22 production sites around the world for its infant formula business. New Zealand processing plants produce base powder to other Danone plants in Asia Pacific and international products to the domestic and Asia Pacific markets.
Danone’s infant formula business distributes its Karicare and Aptamil brand ranges in New Zealand where the company has a 62 per cent share of the market.
Last year Fonterra was ordered to pay the company $183 million in damages to Danone after its precautionary recall of whey protein in August 2013. At the time, chief executive Theo Spierings said Fonterra wanted to renew its commercial relationship with Danone. A Fonterra spokesman said the co-operative would not comment on commercial relationships with its customers.
Danone’s New Zealand operations director Cyril Marniquet said Australia continued to be their number one export destination.
‘‘But we’re seeing growing demand for our international products in other markets, including China. By doubling production capacity we’re better placed than ever before to meet ongoing demand in key markets.’’
The upgrade would result in 150 new jobs, raising its staff to 450 in New Zealand processing operations, he said. To support its export growth, Danone has been granted certifications that give it access to China.
Minister of Agriculture Damien O’Connor said Danone’s Early Life Nutrition investment showed it shared the vision of New Zealand’s primary sector to move higher up the value chain and sustainably produce high-quality food for a growing global population.