Open Country Dairy is set to double output from its Wanganui milk powder plant.
The company confirmed yesterday that a second spray dryer will be installed at the Heads Rd site and will start production from August 2015.
Open Country chief executive Steve Koekemoer told the Chronicle the new facility would replicate the existing tower which stands next to Affco's Imlay meatworks.
Site works are already under way.
"It will be processing its first milk on August 20 next year," Mr Koekemoer said.
He could not confirm if the expansion would see more staff taken on - the plant currently employs about 20 people.
The factory is supplied by about 100 dairy farms through the Manawatu, Wanganui and Taranaki districts and the existing dryer can produce 30,000 tonnes of milk powder from 220 million litres of raw milk. They are figures matched by Open Country's other stand-alone milk plant at Awarua in Southland.
The company has remained tight-lipped about other details around output but a second spray dryer with the same capability indicates the factory will double its output from the start of the 2015-16 milk season.
The Chronicle reported last week that local businesses and suppliers were gearing up for expansion at the plant.
Dairy Fresh, which provides the tankers collecting the milk, has been advertising for a one driver trainer and three dispatchers for its depot in Wanganui.
And increasing output at the milk powder plant means warehouse capacity nearby will be growing as well.
Ali Arc Logistics is building a new 400 square metre warehouse next to its existing storage facility in Heads Rd but with access off Gilberd Street.
Ali Arc will also use extra floor space available in the former Molten Metals building in Gilberd St which is currently the temporary home of the NZ Fire Service.
Open Country opened the Wanganui plant in 2009 with the first bag of powdered milk coming off the production line on August 1. Its three plants - Wanganui, Taupo and Southland - currently have a combined capacity of handling about 900 million litres of milk annually and exports to 50 countries.
It is a private company, majority-owned by New Zealand food group Talley's.