Fonterra plans South Island plant

Fonterra has announced plans to build a multi-million dollar milk processing plant in Darfield, near Christchurch.

The state of the art plant will be one of the largest investments in manufacturing in New Zealand during the last five years, and is expected to create about 50 jobs.

Canterbury is the fastest-growing dairy region in the country, producing about 15 per cent of the country's milk for export.

Fonterra trade and operations managing director Gary Romano said the proposed site could include a high-efficiency milk powder plant – similar to the company's recently opened drier at Edendale in Southland.

Also being considered was a production plant for high-value nutritional milk powders.

The factory would have capacity for 2.2 million litres of milk a day, equivalent to production from 200 farms.

It is expected to be open for business in September 2012.

Romano said as well as catering for the growth of milk production in Canterbury, the factory would reduce truck flows from Mid and North Canterbury to Clandeboye.

Fonterra would now start discussing its plans with the Darfield community, he said.