Synlait to invest US$188.9 million on New Zealand’s new infant formula facility

NEW ZEALAND – Synlait, an innovative dairy processing company has acquired 28 hectares of land in Pokeno, North Waikato, worth US$188.9 to establish their second nutritional powder manufacturing site.

According to the company, it expects to invest in the currently an undeveloped site in New Zealand’s North Island in the coming years as it establishes their infant base powder manufacturing capability at the site.

The need to for additional powder manufacturing capacity was influenced by a forecast increase in customer demand for infant formula products.

Synlait’s long-term formula supply agreements with a2 Milk, New Hope Nutritionals, Bright Dairy and Munchkin underlines the forecast demand as it strives to establish a stronger nutritional footprint.

Synlait will grow their a2 Milk and Lead with Pride programmes with farmers in the Waikato as a part of establishing their new milk supply for Synlait Pokeno.

“We want to partner with dairy farmers who are excited to do more with their milk. a2 Milk and Lead with Pride are two of our special milk programs and we’re really excited to bring these opportunities to the Waikato,” said John Penno, CEO and Managing Director.

The Pokeno facility will help meet their forecast infant formula demand, providing an opportunity to balance exposure to a single powder manufacturing site and single milk supply pool at Synlait Dunsandel in the South Island.

Mr Penno said the commissioning date will be known once the necessary consents and approvals have been obtained for the site.

The first dryer at Synlait Pokeno is expected to replicate the specifications of Dryer Three from Synlait Dunsandel, which is an infant formula-capable spray dryer commissioned in late 2015 with an annual capacity of 40,000 metric tonnes (MT).

“We have built one of the world’s most sophisticated infant formula manufacturing sites in Dunsandel.

With the addition of Pokeno, we will have a national portfolio of added-value capability to leverage for our future growth,” he said.

Mr Penno added that along with Synlait Auckland and their Research and Development Centre in Palmerston North, they’ll have some of the most reliable, productive and modern capability globally to support our customers, categories and markets, as well as the company value addition strategy.

The conditional purchase of land was subject to Overseas Investment Office (OIO) approval and Synlait will support the OIO process as required.

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