Australian Dairy Nutritionals Group to import infant formula plant to Camperdown
AUSTRALIAN Dairy Nutritionals Group has bought an offshore second hand infant formula plant, which it intends to relocate to its Camperdown Dairy site in the Western District town.
AUSTRALIAN Dairy Nutritionals Group has bought an offshore second hand infant formula plant, which it intends to relocate to its Camperdown Dairy site in the Western District town.
The organic milk producer and processor also gets a cheese making plant as part of the deal.
ADNG said the equipment had the initial capacity to produce 400,000 to 600,000 tins of infant formula annually,
The company did not disclose where the plant was currently located but an announcement to the Australian Securities Exchange said it had the capacity to produce milk powders from “niche milks, such as sheep, goat and camel” which were in high demand.
It said the seller had built the plant in 2015 to produce infant formula for the Chinese market but had since outgrown its capacity.
ADNG plans to dismantle the plant, ship it to Australia and rebuild it at the Camperdown Dairy site.
The company had planned to build a new spray dryer and infant formula plant on a new site on the northern edge of Camperdown.
The company said the offshore plant would cost about $5 million, which was significantly cheaper than building a dryer and manufacturing lines at the new site and allowed the production of organic infant formula in much shorter timeline.
“The board sees the purchase of this plant as a way to accelerate its entry into the organic infant formula market in a sensibly staged manner without the initial, much higher cost of a large dryer having significantly more capacity,” ADNG said.
“The board believes staged investment in infant formula production capacity is a more measured approach, with the purchase of the plant providing a solid foundation for the future expansion on the Camperdown Dairy Park site.”
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