Sharechat Logo

Synlait will invest $250 million to develop Pokeno site's first spray dryer

Wednesday 20th June 2018

Text too small?

Synlait Milk will develop its second nutritional powder manufacturing factory for an estimated initial capital investment of $250 million at its new Pokeno site in Waikato, which will be commissioned for the 2019/20 season as it aims to keep up with growing demand for infant formula product.

“Forecast customer demand” prompted Synlait to boost the capacity for its first nutritional spray dryer at Pokeno to 45,000 metric tonnes, up from its initial plan for 40,000 tonnes, the company said in a statement.

The Rakaia-based milk processor has the capital required to fund the new nutritional spray dryer — which will be capable of producing a full suite of nutritional, formulated powders including infant-grade skim milk, whole milk and infant formula base powders — through a combination of cashflow and an increased bank revolver facility, it said.

Initially, Synlait Pokeno will produce infant-grade ingredients while regulatory registration is obtained for infant formula base powder production, the company said. 

“Our immediate focus is on establishing the nutritional spray dryer and associated services, including a wetmix kitchen and warehousing,” chief executive John Penno said in the statement.

“But additional capacity and capabilities may be added in future as Synlait seeks to develop the site to a similar level as Synlait’s Dunsandel site over time,” Penno said.

Milk supply will be sourced from the Waikato region from June 1, 2019, the company said,  

“We’ve had a really positive response from dairy farmers looking to supply Synlait, so we’re confident of securing sufficient milk for the 2019/20 season,” David Williams, Synlait’s milk supply manager, said in the statement.

On Tuesday, shares of Synlait slipped 0.5 percent to close at $10.65.

(BusinessDesk)

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Steel & Tube turnaround continues with 49% jump in first-half net profit
February 18th Morning Report
FIRST CUT: Port of Tauranga lifts 1H profit 4%
NZ dollar starts the week with a tailwind as positive US-China trade talks boost sentiment
Tax Working Group's capital gains proposal keenly awaited
MARKET CLOSE: NZ shares dip as global trade jitters weigh on A2, F&P
NZ dollar set for weekly gain after Reserve Bank surprise
Burger Fuel exploring sale after review questions listing merits
New net migration data to remain rubbery for quite some time
NZX to push sales this year after reshaping business dents 2018 profit

IRG See IRG research reports