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Synlait Milk Limited (NZX: SML) Update Following Canterbury Flooding

Tuesday 1st June 2021

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Following heavy rainfall, which resulted in severe flooding in the region, and a state of local emergency in Canterbury, Synlait Milk Limited wishes to provide an update on the operation of its Dunsandel facility and impact on its farmer suppliers. Synlait Dunsandel is located 50 minutes south of Christchurch which is in the Canterbury region.

Synlait Dunsandel facility update:

• A small team have operated Synlait Dunsandel over the past 36 hours to ensure the facility remained secure and that Foodstuffs South Island deliveries could be met.

• Normal operations onsite will resume from midday today, subject to no further deterioration in site access.

• Non-operational staff are continuing to work from home as the region recovers.

• Health and safety and risk management plans remain in place should there be a further deterioration in the weather.

• Synlait confirms that this event will not have a material impact on its FY21 production plans or guidance outlook.

Farmer suppliers update:

• Flooding has caused significant damage to several farms in the Synlait network.

• The immediate focus is on supporting impacted farmer suppliers to get through this situation safely. After this, Synlait will look at ways to assist with the clean up on farms badly affected.

• Milk collection has been challenging due to road closures. At this point, no milk has been lost.

Synlait CEO John Penno commented: “I want to acknowledge the strong focus our team has had on keeping everyone safe and helping our farmers over the past 36 hours. This has been a rapidly changing situation which has required careful safety and operational planning.”

“Our thoughts are with our farmer suppliers, many of whom have been badly affected by the flooding. Our focus will be on supporting them as best as we can, as soon as the weather clears.”

Please see the link below for details

Announcement: Synlait Dunsandel update following Canterbury flooding

Source: Synlait Milk Limited



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