Synlait wins chance to appeal
SYNLAIT Milk has won the right to appeal a decision restricting the land where its new $260 million Pokeno factory has been built to land grazing, lifestyle farming and forestry.
The company is moving on with the next stage of the legal process and obtaining some certainty, it said in a statement.
‘‘While we’re pleased the legal case can move forward, we still remain committed to working constructively with all parties on a positive outcome,’’ chief executive Leon Clement said.
Synlait’s February 2018 land purchase was conditional on the seller, Stonehill Trustee, procuring the removal of covenants restricting the site’s use.
A High Court decision in November last year removed the covenants and then Synlait took the title of the land.
However, the owner of adjacent land, Ye Qing, had that decision overturned by the Court of Appeal in May.
Synlait then filed an application to appeal to the Supreme Court to have the decision overturned.
That appeal has been granted, according to the judgement published yesterday.
‘‘We’re also committed to Pokeno. The site is now operational, and we are working to ensure an outcome which serves the best interests of our milk suppliers, shareholders and staff,’’ Mr Clement said.
Synlait will be substituted as the appellant, standing in the shoes of previous owner
Stonehill Trustee Ltd.
However, an application by Synlait to introduce new evidence will be determined at or after the hearing of the appeal, the judgement said.
The respondents, Ye Qing and his company New Zealand Industrial Park, have until November 15 to file affidavits regarding the evidence Synlait wants to adduce.
In late September, Synlait announced it had processed its first milk at Pokeno and was recruiting as it increased manufacturing capacity.
Synlait Pokeno’s nutritional spray drier can produce 45,000 tonnes of product each year. The facility can produce a full suite of nutritional, formulated powders, including infantgrade skim milk, whole milk and infant formula base powders. — BusinessDesk