New factory to supply China in multimillion dollar deal

A new Tauranga factory will soon be operating two production shifts and sending UHT long-life milk to the vast market of China in a deal worth millions of dollars.
New Zealand Dairy Processing, formed in July last year, has spent the past few months investing heavily by importing equipment and converting the former Maleme St pet food plant into a modern milk processing facility.
It is understood the recently established dairy company, backed by the Chinese, has already hired 30 people to run the factory, and production of the ultra-high temperature (UHT) milk in cartons is expected to start by the end of the month.
The plant in Tauranga is being established at a time when UHT milk is in strong demand overseas. It is cheaper to buy than fresh milk and cheaper to ship and store.
New Zealand Dairy Processing will be able to access at least 120 million new customers in China; consumers who have become wealthier because of their own country's strong economic growth.
Competitor Fonterra Brands has just spent $8 million expanding and upgrading its UHT plant in Takanini, south Auckland. Fonterra has said global consumption of UHT milk is expected to increase at a compound rate of 5.2 per cent over the next two years, making it one of the fastest growing dairy categories.
The Bay of Plenty Times has made numerous inquiries but New Zealand Dairy Processing, at this stage, declined to give details about their Tauranga operation.
But the company indicated there was huge export potential for the New Zealand product and the business would be successful.
It also indicated there was no problem obtaining supplies of milk, which is heated to kill the spores and then packed.
By law, Fonterra is required to supply competitors with up to 50 million litres of raw milk and New Zealand Dairy Processing can also approach other private milk companies such as Open Country Dairy.
Port of Tauranga confirmed that New Zealand Dairy Processing has talked to them about shipping the containers of milk.
New Zealand Dairy Processing was incorporated on July 30 last year, and then Auckland businesswoman May Wang, who fronted Hong Kong-listed Natural Dairy's bid to buy the 16 Crafar farms, was named as the only director.
Ms Wang has since been made bankrupt following the collapse of her hotel and property business.
Natural Dairy had indicated it wanted to turn the milk from the Crafar farms into export products such as UHT milk and infant formula. This investment would generate jobs and boost dairy export earnings by more than $120 million.
According to the Companies Office records, three new directors of New Zealand Dairy Processing were appointed on December 23, accountant Murray Hunter, Malia-i-makulata Po'uhila and Linling Xie, all from Auckland.
The factory was last used by Lovitt's NZ for making pet food but that business went into receivership at the end of 2008. It kept trading for more than a year and finally closed its doors early last year.
The Maleme St site, including the factory, is owned by Armson Property.