The Mid Canterbury-based processor expects to invest about $260 million in the coming years as it establishes its infant base powder manufacturing capability at the Pokeno site.
In a statement, Synlait chairman Graeme Milne said the company's forecast increase in customer demand for infant formula products meant it needed to add additional powder manufacturing capacity as soon as it could.
Chief executive John Penno said potential Waikato suppliers were encouraged to register their interest with Synlait.
The company also saw the Pokeno site as an opportunity to balance its exposure to a single powder manufacturing site and single milk supply pool at Dunsandel.
The first dryer at Pokeno was expected to replicate the specifications of dryer three at Dunsandel, which was an infant formula-capable spray dryer commissioned in late 2015 with an annual capacity of 40,000 metric tonnes.
The commissioning date would be known once consents and approvals had been obtained. The conditional purchase of land was subject to Overseas Investment Office approval.
In December, Synlait announced it intended spending about $125 million on an advanced liquid dairy facility to supply Foodstuffs South Island from early 2019.
