LIC chief executive Wayne McNee said Mr Whiston brought a strong leadership background to the role, and extensive experience in senior roles for information technology organisations that operate in international markets.
"Paul's leadership skills, knowledge and experience will be vital to the success of the new LIC Automation entity as we plan to grow the business, deliver more integrated technology and meet the increasing demand from farmers," he said.
The formation of LIC Automation follows LIC's acquisition of milk sensor technology provider Dairy Automation Limited (DAL) in February 2014, and a decision to merge it with the co-op's automation business, Protrack.
Mr Whiston will lead a team of 50 staff and be based in Hamilton.