Fonterra, a New Zealand-based dairy co-operative, has announced plans to construct two new high-efficiency milk powder driers at its Studholme site in South Canterbury.
The company has already started consultation process to submit consent applications for the proposed facilities.
The project, if approved, will be carried out in phases and is scheduled for completion over the next 10 years.
When completed, the driers will boost Fonterra's milk processing in South Canterbury, by adding around nine million liters of additional capacity.
Fonterra Global Operations managing director Robert Spurway said that the expansion would play an important role in delivering the co-operative's growth strategy.
"With the steady increase in milk production, a strong schedule of capital investment in processing and manufacturing will be key to delivering on our V3 strategy - driving value, volume and velocity.
"Should it go ahead, the investment at Studholme will bring much needed processing capacity to the South Island as well as optionality to make the products that bring the greatest returns to our shareholders," Spurway added.
The proposed facilities will feature a range of wastewater treatment options with particular care given to the nearby Wainono lagoon.
Fonterra also plans to minimise coal usage and is exploring options for energy-efficient boilers capable of burning biomass.
