Jobs in offing at plant

More than 100 jobs will be created if a Chinese company gains approval to buy land in Glenavy and build an infant formula factory.

Waimate Mayor John Coles is excited about the prospect of a new factory. ‘‘There is definitely supplier interest.’’

One of China’s largest dairy processors, Inner Mongolia Yili Industrial Group, is awaiting New Zealand Overseas Investment Office and Chinese Government permission to go ahead with the plant. Part of the sale includes current owner Oceania Dairy Group Ltd’s land and resource consents which are in place. The 38 hectares of land is near Glenavy on the north bank of the Waitaki River.

The Oceania Group failed to raise the $75m it needed to build a milk powder plant, although according to its research there were plenty of suppliers.

Oceania director Don Brash said yesterday that his company had been attracted to the area because there was a substantial increase in milk supply and the prospect of additional irrigation.

He had been disappointed it did not get the financial support it required to go ahead with the venture but was confident the Chinese company would do well.

Dairy farmer Dave Ellis said about 35 suppliers like him in Waimate district were signed up to a six-year contract with Fonterra and could not switch companies. He said at the time there was little choice for farmers who were owed money from the defunct NZ Dairies company, but believed there may be still enough suppliers to keep the Yili project afloat.

‘‘Fonterra suppliers may relinquish their shares and support the foreign owned company. It comes down to personal circumstances and personal choice,’’ he said.