"We decided it was better to be here than tucked in behind Breadcraft."
He said the larger facility, which will house a recently-purchased second pressing machine, could usher in more jobs over the long term.
Last year, 540 tonnes of fruit was pressed and turned into about 60,000 litres of extra virgin olive oil, for different oil companies from all over New Zealand.
"Now we have the ability to produce even more," he said.
The new facility would also allow the firm to expand its services through another part of the business called The Olive Market. There was demand for olive oil and the country was becoming known for making "some of the best oil in the world".
"The olive industry struggled in its early days. We are now at the stage where people are starting to appreciate the quality of olive oil. We decided someone needed to take the bull by the horns."
They will now buy fruit to make oil to sell on to assist growers.
Depending on the spring weather, sometimes growers fall short of harvesting enough fruit to produce the amount of oil they need to meet demand.
Mr Hey said they were also looking at grove leasing and management.
Growers will also be able to bottle their own oil in a food grade bottling room as well as sell it in the factory's new retail shop. At the opening, the minister also announced the Government's plan to invest $7.5 million over two years in developing key skills and systems to help boost exports across the primary sector.
