China's Yashili New Zealand Dairy Co has entered into a conditional agreement to buy industrial land for a proposed infant milk formula plant at Pokeno, in the Waikato.
The company is waiting on Overseas Investment Office (OIO) approval to proceed with the $210 million project that includes purchase of industrial land and construction and working capital for a processing plant on a newly-created industrial park at the northern end of the Waikato expressway, Guangdong-based Yashili said in a statement.
Upon completion, the plant will produce up to 52,000 tonnes of finished and semi-finished milk product annually.
In January Yashili and China's biggest dairy company, Yili, unveiled plans to invest in building processing plants in New Zealand. Yili will spend $214 million in establishing an infant formula plant in South Canterbury as a result of its planned takeover of Oceania Dairy group.
Yashili said its New Zealand plant is planned for commissioning in the second half of 2014.