Devondale, which is the public face of the Murray Goulburn Co-operative, is set to build a $60m milk processing plant at Erskine Park in Sydney, Australia.
In June 2013, the Australian farmer co-operative has acquired a five-hectare plot within the 100-hectare western Sydney industrial park from CSR Limited for this new plant.
The Sydney plant is one of the two facilities announced in April 2013, aimed to grow its daily pasteurized milk business in New South Wales and Victoria.
Devondale has started the construction of its Melbourne-based processing plant, which is being built alongside Devondale's existing Integrated Logistics Centre in Laverton.
The dairy giant is currently looking to increase its milk supply in the Sydney region to support the new processing plant.
Devondale operations general manager Keith Mentiplay said the company is well on track to become the nation's most efficient producer of daily pasteurised milk.
"Erskine Park was an obvious choice for us. As well as excellent land quality and infrastructure, this location also gives us easy access to the major milk supply regions in NSW, to the north, south and west of Sydney," Mentiplay added.
"We had the opportunity to speak to more than 300 farmers about what we had to offer.
"As a Co-operative, Devondale returns 100% of the profits from our operations to our dairy farmer shareholders."