November 18, 2010

New Zealand Dairies' factory up for sale

New Zealand Dairies Ltd's (NZDL) plant at Studholme is officially on the market and the Russian owners Nutritek have engaged global financial services firm Morgan Stanley to find a buyer.

NZDL chairman Richie Smith said Morgan Stanley would advise Nutritek on a potential divestment of its New Zealand operations. "They have been asked to invite expressions of interest in the South Island milk-processing operations at Waimate," he said.

Smith said that following a strategic review of its global operations, Nutritek had decided to refocus on its domestic Russian business. "NZDL's Russian owners have been totally committed to the company and have built and established a very successful plant here. However, the New Zealand asset no longer fits with Nutritek's longer-term global strategy," he said.

The company has been reported to have monetary troubles at home and proposed expansions including moving into value-added milk products such as baby food have been put on hold at the dairy factory.