Fonterra will use A$125 million (US$100 million) from the investment to double the size of its Australian flagship Stanhope cheese plant in Victoria, A$12 million (US$9.6 million) to expand its Wynnard cheese plant and will increase its lactose processing capacity at Spreyton, both in Tasmania. Its Stanhope cheese plant currently can turn out 45,000 metric tons of products annually and the investment will increase cheese production by a further 35,000 metric tons.
Improvement projects at its butter plant in Cobden, will cost A$13.5 million (US$10.8 million) and another A$8.6 million (US$6.9 million) will go to a new 25 kg packing line for nutritional powders and efficiency improvements at Dennington Victoria.
Fonterra Australia's managing director René Dedoncker said that the company will bolster its strengths in cheese, whey, nutritionals and butter, increasing production capacity to meet growing domestic and international demand. However, more supply needs to be secured to serve the expanded production capacity.