You are using an older browser version. Please use a supported version for the best MSN experience.

Westland Milk in new joint venture

NZ Newswire logoNZ Newswire 29/09/2016 Paul McBeth

Westland Milk is putting a $3 million plot of land next to its Rolleston factory into a joint venture with Hong Kong-listed Ausnutria Dairy to build a new infant formula plant operating under the Pure Nutrition moniker.

The milk processor will take a 40 per cent stake in the Pure Nutrition joint venture company, while Ausnutria will get 60 per cent with the Hong Kong company injecting $4.5m of cash and loaning $32m to the subsidiary to build a blending and canning plant at Rolleston, Westland said.

Construction is expected to kick off soon with completion slated for late next year, adding 30 jobs to the Canterbury town. The plant's initial capacity is expected to be about 20 million cans of milk formula, or 15,000 tonnes, depending on the product mix.

"Pure Nutrition will, effectively, be a substantial new customer for Westland Milk Products," chief executive Toni Brendish said.

"In addition to the direct sales to Ausnutria in China, which will continue, Westland will be the JV's sole New Zealand supplier of dairy-based powders."

image beaconimage beaconimage beacon