The Westland dairy co-operative is planning a new nutritional products plant at Rolleston to process the increasing amount of milk it's getting from Canterbury farms.
Westland has its main factory in Hokitika and most of its farmer suppliers are on the West Coast.
But it also has more than a dozen suppliers in Canterbury. Their milk is sent by rail to Hokitika for processing.
Chief executive Rod Quin says Westland is planning to increase its milk supply in Canterbury and is applying for consents to build a plant next to its existing facilites at the Rolleston Industrial Park, near Christchurch.
It will have three milk dryers to produce nutritional products such as infant formula, and growing-up milk powders, for local and international markets.