Takeover target Goodman Fielder Limited (ASX:GFF) will a pour $NZ27 million, or about $AUD24.8 million, into a milk plant in Christchurch, New Zealand.
The food manufacturer says the investment will expand and upgrade its ultra heat treated (UHT) milk plant and increase its capacity to meet demand from the Asia Pacific. Work is expected to be completed by October 2015 and double the plant’s existing ultra heat treated volume.
CEO Chris Delaney says the project will enable Goodman Fielder to leverage its existing export capacity to Asia Pacific by meeting the growing demand for dairy products.
The company believes the premium ultra heat treated category in the Asia Pacific is anticipated to grow by about 50 per cent over the next five years.
Goodman Fielder last month backed a sweetened takeover bid from its suitors Singapore-based Wilmar International and Hong Kong’s First Pacific.
Goodman Fielder reported a net loss of $61 million in the first half of the 2014 financial year.
