OCEANIA DAIRY GLENAVY FACTORY UPDATE

Overview of Project Progress

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

The dryer tower has reached 21 metres, just under halfway to its final height of 47 metres; underground services works on site are essentially complete; the office building and laboratory, along with the services building, are on schedule for completion early next year; the drystore is well advanced, with roof and wall cladding nearing completion; the boiler is scheduled to leave India in December for installation in the new year; the 11kV and 33kV works being undertaken by Alpine Energy are on schedule; and the irrigation, water treatment and packing gas programmes are progressing according to 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.

State Highway 1 Roadworks

A slip lane, turning lane and lighting are being added to the intersection of State Highway 1 and Cooneys Road to cater for the increase in frequency and size of vehicles using the intersection when the factory opens in 2014.

This work is scheduled for completion in early December.

The development work has been approved by New Zealand Transport Agency, who owns the road.

Employment

Oceania Dairy currently has 11 staff, with this number expected to ramp up rapidly in the new year.

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

The management team of Oceania Dairy will be complete in early December.

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