Saturday, October 20, 2018
 New Synlait Dairy Already Plans Expansion  
By Neil Wallace

Synlait, the Canterbury company behind the country's newest dairy factory, already has plans to expand it. 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 liters of milk this season and 300 million liters next year.

That would increase to 550 million liters with the planned expansion.

Source: Otago Daily Times (NZ)

Posted on Wednesday, February 25, 2009 (Archive on Wednesday, March 04, 2009)
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