Westland Milk Products to invest $70m at Hokitika factory

Westland Milk's Hokitika factory. Photo / Supplied

RNZ

Westland Milk Products is to invest $70 million to expand its manufacturing of dairy protein lactoferrin.

Chinese-owned Westland will treble production of the protein at its Hokitika factory and in the process become one of the top producers in the world.

The investment is the second major spend for Westland since Yili, the world’s number five dairy company, rescued the debt-laden Westland in mid-2019.

Westland chief executive Richard Wyeth said the new plant and expansion fitted its plan to focus on high-value consumer goods and specialised ingredients from its milk supply.

“We can ensure that we extract maximum value for that product, and our lactoferrin strategy is a critical part of that.”

He said lactoferrin, used in the manufacture of infant formula, was in strong demand worldwide, and its new plant would give it an alternative method of making the product, which would broaden its appeal and sales.

Wyeth said the company was concentrating on developing fat-based and protein products, with the $40m investment in upgrading its butter-making plant in 2021 paying dividends, including overseas sales to US retail giant Walmart.

He said there were plans for further products.

“We’ve two or three other projects, more on the protein side that we plan to launch in 2024/2025.”

Wyeth said being part of Yili was giving the company the best of all worlds.

“We’re very much part of their supply side, but they want us to grow our business internationally and be part of the globalisation strategy as well.”

“That’s what’s exciting for us, we get to play in both camps in terms of helping to support the China business but maintain the tradition of Westland to grow its international business as well.”

- RNZ