Prime Minister John Key officially opened the Synlait factory at Dunsandel last Friday with management taking the opportunity to announce plans to spend a further $70 million to increase processing capacity and its range of products in time for spring 2011.
Managing director John Penno said in a statement new equity would be sought to pay for a second milk dryer, which would be able to produce a greater range of products than the company's existing dryer.
Mr Penno said Synlait, majority-owned by Japanese corporation Mitsui, had a secure supplier base, a track record as a processor and demand for its products.
First NZ Capital has been appointed to advise on capital raising options.
"If it is decided to raise capital, we may approach a small number of larger investors and could also include a small public offer, including to existing shareholders," Mr Penno said.
Synlait started processing milk on August 2 last year and will handle 200 million litres of milk this season and 300 million litres next year.
That would increase to 550 million litres with the planned expansion.
