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The Russian-controlled New Zealand Dairies is thought to be planning to spend another $100 million on the Studholme factory, installing an anhydrous milk fat plant or a second dryer.
NZ Dairies chairman Peter Lavery would not confirm the figure or plan suggested by the Otago Daily Times.
"But that could be the case. There is nothing specific, but it could well be of that order."
Russian company Nutritek Group last month took its stake in NZ Dairies to more than 51 per cent, and said it had firm agreements in place to acquire a further 25 per cent of the company.
Nutritek chairman George Sazhinov said at the time the company would move ahead with plans to add further production facilities to the Studholme plant and to develop high-technology and high value-added products in New Zealand. On May 27, the Government gave Nutritek approval to increase its stake in NZ Dairies from 5.65 per cent to 100 per cent over a 12-month period.
Nutritek is a rapidly growing Russian company with a capitalisation of about US$800 million ($1.1 billion). It produces baby foods, infant formulas and specialist nutritional products.
Sazhinov and chief executive Oleg Ochinsky last week met local organisations and business and community representatives in Waimate.
- OTAGO DAILY TIMES
