Milk plant ground broken

Development has begun of the site near Gore where a new milk powder plant will be built. Photo / Samuel White

The ground has been broken at the site of a new milk powder factory near Gore, although a company is yet to be contracted to build it.

Mataura Valley Milk director Aaron Moody, of Mataura, said a company had not yet been chosen to construct the $200million nutritional milk powder manufacturing plant announced in July this year.

However, "steady" ground work at the former McNab stock yard site was progressing "really well".

A decision on the successful tender applicant should be made in the upcoming weeks, Mr Moody said.

The plant could take up to 18 months to complete but progress would be dependent on weather conditions.

He hoped the plant would be ready by the end of 2018, Mr Moody said.

Gore Mayor Tracey Hicks said initial work began about three weeks ago and much progress was being made.

The plant was significant for the local economy and he was glad to see it was progressing, he said.

He was excited about the plant's potential to bring up to 100 new jobs the region.

Mataura Valley Milk said in a statement 20% of stakes in the plant would be held by Southland farm suppliers and foreign company China Animal Husbandry Group would own just over 70%.

The remainder would be held by a BODCO Dairy and Mataura Valley Milk directors.

The new pharmaceutical standard plant would produce infant formula, ultra-high temperature cream and small amounts of skim milk powder.