Synlait stays committed despite setback

SYNLAIT says it remains committed to the location of its new plant at Pokeno despite doubt over the ownership of the land.

The $280 million nutritional powder manufacturing site was due to be commissioned for the upcoming 201920 dairy season.

Synlait announced the conditional purchase of 28ha in February last year to build the site in north Waikato.

The title had since transferred to Synlait after the removal of land covenants by the High Court late last year but that decision was reversed on Thursday in the Court of Appeal.

In an update yesterday, Synlait said it had acted in accordance with legal advice at all times in respect to the land.

Due to the land being rezoned industrial land from grazing land, and the development in the Pokeno area including the building of another dairy plant, Synlait was confident the land covenants no longer remained relevant. That was confirmed when the High Court removed the covenant last November.

‘‘It made sense as a result of zoning and proper planning that allowed for industrial zoning that the land covenants would be removed by the court, which they were,’’ chief executive

Leon Clement said.

Synlait took legal title to the land only after the High Court decision removing the land covenants. The Court of Appeal decision was ‘‘unexpected’’, Mr Clement said.

Synlait would continue to engage with all parties involved and was confident the covenants issue could be resolved by the parties. It intended to continue with plans at Pokeno.