April 9, 2014

"Westland has a strong history of producing high quality milk powders and butter," said Bernard May, the company's general manager of operations. "But we have made a strategic decision to shift further production toward high-end nutritional products, such as infant formula. Nutritionals consistently deliver higher margins than milk powders and will lead to better pay-outs for our shareholders as well as placing Westland on pathway to a more secure and sustainable future."

May added that the conditions imposed on the consent will mean that there will be almost no additional impact on the environment as the Hokitika factory will still be able to operate under current existing air and wastewater discharge permits.

He said that shareholders were advised of the council's decision and will be fully briefed at shareholder meetings in May 2014.

The new dryer will allow Westland to produce an additional 23,000 tonnes of nutritional product per season. The co-operative has engaged the services of Babbage Engineers as project managers and the plant will be built by Tetra Pak. It is expected to be commissioned in August 2015 and generate sales of US$115million per year when at full capacity.

The approval comes on top of a series of investments by Westland including a new boiler at Hokitika.