Ingredient Solutions wants to raise $27.5 million to build a new milk processing plant in South Taranaki targeting high-value protein products.
Acting chief executive Neil Domigan said the plant would be the first of its kind in New Zealand, using membranes to selectively remove proteins in their natural
state.
"Proteins are complex molecules and are easily damaged but the proteins produced at our plant will be of a quality that can be used in sports nutrition drinks and other high-value products," Domigan said.
The plant will produce un-denatured miceller casein, whey protein isolate and protein hydrolysates for export.
The facility was scheduled for completion in 2009, with a capacity to process up to 100 million litres of milk a year and employ up to 20 people.
"Now is a good time to raise the $27.5 million because global demand for proteins that add value to premium food products is strong despite the downwards trend in commodity prices," Domigan said.
"A letter of intent to acquire up to 40 per cent of Ingredient Solutions' equity has been signed by a North Asian investor who is also looking to buy all product produced at the facility for the first three years."
The plant could reach 90 per cent of its capacity in the first year, with projections based on processing 50 million litres for revenue of more than $45 million and earnings before interest and tax of more than $6 million.
The share offer closes on January 23 and comprised 27.5 million ordinary shares at $1 each, conditional on getting applications for at least 17.5 million shares and with a minimum investment of 500,000 shares.
