27 Feb 2013

New UHT factory to be built

12:58 pm on 27 February 2013

Fonterra is to invest $100 million in a new ultra high temperature milk processing plant at Waitoa in Waikato.

Fonterra said the new plant will allow it to double its UHT production over the next few years and meet growing demand for the products in Asia.

Chief executive Theo Spierings said the new factory will need year-round supply and Fonterra will be talking to North Island farmers about taking up winter milk contracts.

Mr Spierings said these farmers would be able to reap the benefits of a milk price premium.