18 Mar 2009

Synlait looking for $100m to finance expansion

7:02 pm on 18 March 2009

Synlait is going ahead with expansion plans and is seeking to raise $100 million to finance them.

The mid-Canterbury dairy company is in its first season of processing milk powders for export.

But its plant at Dunsandel is already close to maximum processing capacity. The company has milk contracts that will mean an increase in production to 300 million litres in the next year.

Synlait plans to construct a second drier that will increase capacity to 550 million litres per year, by 2011.

Managing director John Penno says the second drier will be similar in scale to the first, but capable of manufacturing a new range of higher specification products.