Synlait to supply Foodstuffs South Island
Synlait Milk will build a new $125 million factory south of Christchurch to supply Foodstuffs South Island with private-label fresh milk and cream from early 2019.
The dairy-processing company said it would establish a platform to pursue a range of dairy-based products for domestic and export markets in future.
Synlait managing director John Penno said it was a further and significant step towards becoming more diversified.
Fresh milk and cream from Synlait will be packaged in Value and Pams branded products, which are available in New World, Pak’n Save, Four Square and On The Spot stores.
Foodstuffs South Island chief executive Steve Anderson said: ‘‘The partnership allows us to give our customers surety around milk supply with an innovative New Zealand-based milk supplier.
‘‘In time, we are looking forward to collaborating with Synlait to create a range of new and innovative dairy-based products.’’
Synlait’s research and development centre in Palmerston North, which is a collaboration with Massey University and FoodPilot, will provide technical expertise.
The $125m investment will be for an advanced liquid dairy packaging facility at Dunsandel, in the Selwyn district.
‘‘This will be one of the most sophisticated fresh milk and cream processing facilities in New Zealand. By leveraging what we have learnt about milk quality and blending dairy products in our infant formula business, we will deliver a great facility at Dunsandel,’’ Penno said.
The facility will be capable of producing high-specification pasteurised milk and cream for domestic use, extended shelf life dairy products, long-life milk and cream for export, ready-to-drink liquid infant formula, and toddlers’ milks.
Penno said Synlait had proven experience from establishing and rapidly growing a successful infant formula business.