Montana plans big expansion

Montana plans to invest millions of dollars in Corbans' Napier winery, doubling its capacity over the next three years.

Before Corbans sold to New Zealand's biggest wine company, Montana, it had already included its Hawkes Bay operation in a significant investment programme.

Around $10 million has been spent on vineyard and winery expansion at the Thames St plant over two years.

Now Montana says Hawkes Bay stands to gain millions in added investment as a result of the Corbans purchase, officially ratified by the company's shareholders last week.

Montana is to spend $100 million in vineyard development and winery upgrades nationwide in the next three years.

National wineries manager Jonothan Tommy says the Hawkes Bay expansion is necessary to process the region's growing grape volumes.

Corbans lifted its Hawkes Bay plantings from 70ha in 1997 to 95ha of producing vines for the 1999 harvest. Its total land ownership in the region is 250ha.

Montana says it is working out how best to accommodate Corbans' employees into a new, larger staffing structure.

It is also to increase investment in Gisborne, Marlborough and Auckland, where both companies have production facilities.

- NZPA