Oceania Dairy Glenavy Factory Update January

Overview of Project Progress

The overall project is on target for completion in time to take milk in August 2014.

Work on the underground services on site is now complete and roading preparation works within the factory site have commenced.

Work has also finished on the State Highway 1 roadworks. This included the addition of a slip lane, turning lane and lighting to the intersection of State Highway 1 and Cooneys Road. This will cater to the increase in frequency and size of vehicles using the intersection when the factory opens in August..

Site works on the water treatment, waste-water treatment and chilled water facilities are underway.

The dryer tower is not far short of its final height of 47 metres, with the focus now moving to the installation and assembly of the dryer and associated plant. Construction of other buildings on site, including the site offices, services building and the drystore are all well advanced.

Critical boiler components are due to arrive in Timaru port in early February; and will be transported to site following further assembly in Timaru.

11kV and 33kV electricity supply works being undertaken by Alpine Energy are on schedule.

At full capacity, the Glenavy processing plant will be capable of processing 300 million litres of milk per year, generating 47,000 tonnes of milk powder.

Employment

The management team of Oceania Dairy has been completed with the appointment of Scott Wilson as Supply Chain Manager.

The management team now comprises:

Aidan Johnstone – Chief Executive Officer
Shane Lodge – Quality and Compliance Manager/ Supplier Liaison Manager
Tony Macfarlane – Human Resources Manager
Richard Hickson – Operations Manager
Scott Wilson – Supply Chain Manager

Oceania Dairy currently has 20 staff, with this number growing rapidly as recruitment activity is spread across a wide range of roles.

When operating at full capacity, the factory will employ approximately 70 permanent staff, with the majority expected to be recruited locally.

Milk Supply Agreement

Oceania Dairy signed its first milk supply agreement for the new factory late last year.

The agreement was signed with local dairy identities Aad and Wilma van Leeuwen, representing a group of Foundation Suppliers covering 20 individual farms.

Milk Supply Agreements are currently being completed with a number of other suppliers. Up to 40 local farmers are expected to be contracted for the 2014-15 supply season.

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