Synlait Milk says it is confident it can find a solution to the ownership problem now afflicting most of the land on which its new Pokeno factory stands because of an adverse Court of Appeal decision.
That ruling effectively means the factory was built in breach of covenants affecting Synlait's land.
When Synlait purchased the 28 hectares of land in February 2018 it was conditional on the seller, Stonehill Trustee, procuring the removal of the covenants on the land which restricted its use to grazing, lifestyle farming or forestry.
A High Court decision last November had removed the covenants but the owner of adjacent land, Ye Qing and his company New Zealand Industrial Park, has won an appeal against that decision, which was published late yesterday.
"Synlait will continue to engage with all parties involved and is confident the covenants issue should be able to be resolved by the parties. The company remains committed to the location," Synlait chief executive Leon Clement says in his second statement today on the issue.