The country's biggest mushroom producer is undergoing a $45 million expansion which includes moving its composting facility indoors to contain odours.
Meadow Mushrooms which produces about 145-tonnes of fresh mushrooms a week, is consolidating its operations in Canterbury, after announcing last month it will close its Waikato plants by March next year.
The Waikato operations were unable to comply with an Environment Court ruling to eliminate odours.
Meadow Mushrooms says it will upgrade its facilities at Norwood and Wilmers Road on the outskirts of Christchurch.
Chief executive Roger Young says this includes building a specialist bulk composting unit which will have large tunnels and bunkers that are designed to capture and treat odours.
Mr Young says the investment will also increase the company's production levels.