The Otago Daily Times understands Oceania Dairy Group is very well advanced in negotiations to raise the capital and expects to complete that within weeks.
It is also understood the company is confident of having the milk it needs when the plant begins production in August next year.
Oceania is building the plant in Cooneys Rd, next to State Highway 1 about 3.5km north of Glenavy.
It has resource consents from Environment Canterbury (ECan) and the Waimate District Council for the plant, but needed to raise about $75 million in capital and between $25 million and $30 million in loans before it could build it.
Oceania chairman Dr Keith Turner, when contacted yesterday said he could not comment until negotiations with investors had been completed.
When resource consents were granted, the next step for the company was to obtain the $75 million investment it needed.
At the same time it called for expressions of interest from contractors, which are at present being investigated.
The Otago Daily Times understands the $75 million the company needs will be signed up before the end of the month, most coming from within New Zealand, but also from a Hong Kong-based Chinese company which will take product from the plant.
The Chinese company is not Natural Dairy NZ Holdings, which is seeking Overseas Investment Office approval to buy dairy farms formerly owned by the Crafar family, which are in receivership, and has plans to build milk processing plants in New Zealand.
Farmer suppliers are expected to contribute about $10 million of the $75 million.
Oceania has also had a positive response from banks wanting to fund the other $25 million to $30 million.
The $100 million to $105 million will build the plant and provide initial working capital.
It is also understood the company has already signed significant contracts with farmers to supply milk and confidently expects to have all the 220 million litres a year it needs when production starts in August next year.
All the milk was originally projected to come from within 50km of the plant - North Otago and South Canterbury farms.
Contracts to build the plant are expected to be finalised next month, with commissioning in June-July next year and the company meeting its target of August to be have the plant operating for the start of next dairy season.
Milk plant
What: $100 million plant processing up to 220 million litres of milk from 50,000 cows a year.
Who: Oceania Dairy Ltd.
Directors: Dr Keith Turner (chairman), former Meridian Energy chief executive; Dr Don Brash, former National Party leader, former Reserve Bank governor; Phil Lough, Nelson businessman, former NZ Dairy Board deputy chief executive; Paul Park (acting Oceania Dairy chief executive), managing partner Ocean Partners; Tim Howe, partner and co-founder of Ocean Partners.
Where: 5ha site east of SH1 on Cooneys Rd, about 3.5km north of Glenavy.
Granted: Four resource consents from Environment Canterbury and one from Waimate District Council in February.
Operational: August next year.
Jobs: Up to 200 during construction; up to 70 on- and off-site when operational.
Plant features: 45m high boiler stack, 37m high drier tower, ancillary buildings up to 10m high.
