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Westland Milk Products has been granted land-use consent for a new dairy nutritionals drier on its Hokitika site, allowing it to proceed with the $102 million project.
Subject to there being no appeals over the next 15 working days, the company expected work to start almost immediately.
The drier would allow West-land to produce an additional 23,000 metric tonnes of nutritional product, such as infant formula, each season.
The co-operative has engaged Babbage Engineers as project managers and the plant will be built by Tetra Pak.
It was expected to be commissioned in August next year and generate annual sales of $115 million when at full capacity.
Conditions imposed on the consent meant there would be almost no additional impact on the environment as the factory would still be able to operate under existing air and wastewater discharge permits.