Packaging for the milk industry has received some positive news with milk processor Synlait announcing it will raise $98m for a $300m expansion programme over the next three years.
Synlait says it will use the additional capacity for consumer packaging, infant formula manufacturing, infrastructure requirements and cream manufacturing. The company will purchase land next year, perhaps in New Zealand, to complement its South Canrerbury plant in Dunsandel.
Chairman Graeme Milne comments, “We are looking at investing approximately $300m in capital growth projects over the next three years to solidify this position and continue pursuing profitable opportunities to make more from milk.”
The plans come off the back of Synlait’s skyrocketing growth, with the company reporting its net profit after tax has more than tripled to $34.4m. Synlait points to demand for packaged infant formula as the cause of the strong performance, with canned infant formula volumes increasing by almost fourfold.
John Penno, chief executive at Synlait, says,, “Canned infant formula is a value added product and generates a strong margin, which improves our product mix and overall gross profit per metric tonne. ”
The company has also revealed it will list on the Australian Securities Exchange (ASX) before the end of the year.
