Synlait to open new $125 million plant

by Mike Isle

Synlait Milk is partnering with Foodstuffs South Island to bring high-quality Canterbury milk and cream to the market, and is expected to spend $125 million in Dunsandel to do it.

The $125 million investment is an advanced dairy plant in Dunsandel, which the company says is aimed at delivering a state of the art liquid blending and packaging capability.

The plant will enable Synlait to produce fresh milk and cream for domestic and export use, and the ability to pursue a range of dairy-based extended and long-life consumer products in the future. 

Synlait’s managing director and chief executive, John Penno, said the move was a substantial step toward Synlait’s goal of being a balanced and diversified business.

“We believe this opens up a new category –everyday dairy—and has the potential to both leverage our current position and explore new customers and markets,” he said. 

Mr Penno describes the new plant and the partnership with Foodstuffs as strategic for both parties.

“We are very proud of our Canterbury dairy farmers and the way they farm. We are excited about making our farmers’ fresh milk available to everyone in the South Island, in partnership with Foodstuffs.”

Mr Penno said the fresh milk from Synlait will be packaged in Value and Pams branded products, which are available at New World, PAK‘nSAVE and On The Spot stores.

The new plant, which Mr Penno said as one of the most sophisticated fresh milk and cream processing facilities in New Zealand, is expected to go into production in 2019.