Having a "sophisticated wastewater treatment plant" would also help with the sustainability of the Hautapu site, which had been there "for a very long time" Whineray said.
"It's a big commitment to the site for the long-term."
The plans for the new wastewater treatment plant will be finalised over the next 18 months and the co-op aims to begin construction in September next year.
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The plant was expected to be fully operational in two years, Whineray said.
The move was all part of Fonterra's Long Term Strategy, with the co-op investing around $400 million over the next eight years to reduce water use and improve water treatment at its manufacturing sites throughout the country.
"We've recently completed the installation of a new plant at Whareroa ... in Taranaki and works are already underway in our Tirau and Te Awamutu sites," Whineray said.
"Water is critical to all New Zealanders and we want to conserve, protect and reuse it because it's fundamental to all of our activities here."
Meanwhile, Fonterra recently announced its interim results, which was a great time for the co-op to reflect on "how we're travelling" for the first half of the financial year, Whineray said.
Fonterra had made "some very good progress" even with the added pressure of the Covid-19 pandemic, he said.
"We've looked after our people - that's been critical as we're still rolling through Omicron coming down the island - and we've delivered safe quality products to our customers [through] some challenges with the supply chain."
A big highlight from the interim results for Whineray was that, even after all these challenges, Fonterra had still managed to pick up "that great milk from our farmers".