Can factory caters to milk exporters
Chinese-owned packaging manufacturer Jamestrong Packaging has opened a $13 million infant formula can factory in Christchurch to support the exports of companies such as Synlait Milk.
Jamestrong’s Australia and New Zealand managing director, Alex Commins, said the Hornby facility would provide about 20 new jobs supplying New Zealand milk powder to the burgeoning Chinese infant formula market.
‘‘The key thing to a successful operation like this is to be close to the source of the raw product and associated services,’’ he said.
The Hornby factory is the second of three infant formula plants Jamestrong is developing. One is in Victoria, Australia, and the other is being built in Auckland for completion by early 2019.
An opening function was held for suppliers and customers at the new Hornby factory, which was attended by about 100 people.
The move into dairy products complements Jamestrong’s other canning operations for Heinz Watties in Hawke’s Bay for beans and vegetables.
‘‘Synlait with its A2 milk is our core customer but we also do work for Yashili, NZ Dairy Collaborative, Westland Dairy and Blue River Dairy.’’
These companies are Chineseowned or supported except for Westland Dairy, which is owned by West Coast dairy farmer suppliers. Some of them make goat and sheep milk powder.
Commins said the canning plant would cater for South Island clients and had capacity to be expanded. It could turn out about 60 million cans a year.
The plant was specialised, allowing customers to spend their money on producing the milk powder, he said.
In 2016 the New Zealand operations of Jamestrong gleaned revenue of $102m and profit of $5.5m after paying tax of $1.8m. Employee expenses were $14.1m.
Jamestrong was owned by Amcor until 2008 and after two more changes of ownership was acquired by Shanghai Yuanlong Investment Company, one of the biggest packaging companies in China.