Mataura Valley Milk has today announced plans to build a $200 million nutritional milk powders manufacturing plant at McNab, about 5km north of Gore, in Southland.
The company is majority owned by Chinese company China Animal Husbandry Group with 20% of the company to be held by Southland dairy farmers who will supply the plant.
About 100 new jobs will be created by the plant on which construction is expected to start in October this year.
Gore resident and Mataura director Aaron Moody said the plant was designed to tap into the growing global demand for nutritional powders, especially infant formula.
The new pharmaceutical standard plant would produce infant formula, ultra-high temperature cream and small amounts of skim milk powder using locally-sourced raw milk for global markets.
Many of the products would be canned and distributed by BODCO, a Hamilton-based dairy business and a minority shareholder in Mataura Valley, he said.
"The relationship with China Animal Husbandry Group provides us with the confidence to proceed with the plant and excellent access to the rapidly growing demand in the Chinese market."
