The Overseas Investment Office (OIO) has granted consent for Chinese interests to take a majority holding in a proposed $200 million infant milk powder factory, just north of Gore in Southland.
Details of the deal were only made public by Mataura Valley Milk Ltd on Thursday, with the OIO yesterday confirming it had granted consent for the China Animal Husbandry Group to take a stake of "up to 90% of the shares of Mataura Valley Milk Ltd, directly or indirectly''.
China Animal Husbandry will have a 72% stake in Mataura Valley Milk, local farmers 20% and canning and distribution company Bodco, of Hamilton, 6%.
Bodco is 40% owned by China Animal Husbandry.
The OIO said Mataura Valley Milk owned about 22.5ha of "sensitive'' land near Gore and had an option to buy about 8878sq m more.
The OIO said China Animal Husbandry intends to invest in Mataura Valley Milk through subscription for new shares in that company and the acquisition of shares from some minority shareholders, then build the dairy processing plant.
"The establishment of the dairy plant and its operation is likely to result in the creation of numerous jobs in Southland as well as added market competition in the dairy processing industry,'' the OIO said.
Consent was granted given jobs would be created, export receipts would increase and market competition and productivity would be added, the OIO said.
It is expected about 60 jobs will be created in Gore and further 40 in Hamilton.
Construction is expected to begin in October, with the plant opened by August 2018.
