November 1, 2005

Fonterra to open NZ$22 million R&D centre in Australia

New Zealand dairy giant Fonterra said it would open a NZ$22 million research and development centre in Melbourne, Australia, in early 2007.

However, the company said it did not plan to cut down activities at its existing R&D facility at Palmerston North, New Zealand.

Fonterra added that the new facility was part of its growth plan.

Victoria state's government also granted Fonterra tax breaks, which encouraged the company to locate its new facility in Melbourne.

Building costs for the new facility would reportedly amount to NZ$16 million, but the final figure was expected at NZ$22 million if costs of scientific equipment were included.

Fonterra chose Melbourne as the new site reportedly matched the company's strategy of becoming a leader in the Australian dairy industry.

In addition, Fonterra has already established itself as a key market player in Victoria, Australia's largest dairying state.