Synlait Milk, a New Zealand-based dairy company, is set to invest $15m in its Dunsandel infant formula manufacturing plant to upgrade its Special Milks Drier to meet growing demand for its infant formula in China.
With this investment, the company hopes to reach 18 metric tons production within four years of commissioning in late 2013 to early 2014.
Synlait will produce lactoferrin as a spray dried powder and manufacture dairy ingredients to a pharmaceutical standard in the plant.
Lactoferrin is a bioactive protein extracted from milk that provides antibacterial protection and is used in health foods including infant formula and adult nutritional powders.
Synlait Milk chief executive John Penno said that this investment is strengthened by contracts with eight customers for infant formula including China-based YinQiao Xi'An, Bright Dairy and A2 Corporation.
"As a trusted supplier Synlait Milk is keen to meet its customers' requirements for an easily soluble lactoferrin manufactured to the same exacting quality assurance standards that Synlait Milk takes pride in attaining for all its products," Penno added.
"Lactoferrin will add to our range of specialised health and nutritional products, a category identified recently as one of the main contributors to the Government's target of doubling the value of New Zealand's export earnings by 2025.
"To reach that target New Zealand must make more from milk to leverage its position as the world's leading dairy exporter."
The company claims that the finer spray dried powder will to provide solubility properties when used in infant formula without any chances of forming residues.
