Global financial turmoil and credit squeeze have scuppered expansion plans for a dairy company in South Canterbury.
New Zealand Dairies was planning a $100 million expansion at its Studholme processing plant which is in its second year of operation.
The expansion is now on hold because of financial pressure on its major shareholder, the Russian owned Nutritek Group.
The company says a combination of the international economic turmoil and a heavy devaluation of the Russian rouble has forced Nutritek to restructuring its finances. NZD is currently in discussions with its bankers.
However, aside from having to defer the expansion, chairman Peter Lavery says the company is running smoothly and expects to have no uncommitted stock at the end of this season.
