The larger butter line is part of the co-op’s investment of up to $1 billion over the next three to four years in projects that generate further value and make the operation more efficient.
Clandeboye’s expansion ties in with a strategy to lift returns from high-value dairy through value-added milkfat products and improved product mix.
The design stage is nearing completion with demolition under way and construction set to increase over coming weeks.
Excavation, foundation and drainage work will be completed before contractors start building the new butter process hall.
At the same time, work will soon begin to install new pipes linking milk treatment to the butter line.
The exterior of the building extension will start to become visible by April.
Fonterra said the new butter line would increase capacity and expand the site’s ability to produce a wider range of formats, including halal and kosher options.
Added butter production would also support demand from overseas customers and professional kitchens.
Clandeboye site manager Ross Burdett said the expansion was an important development for the site and the local community.
"The new butter line will allow us to produce a wider range of butter formats for customers around the world, while creating 16 new jobs here in South Canterbury and strengthening the co-op’s South Island manufacturing network," he said in a statement.
The first product is expected off the line in about 15 months.
Clandeboye is Fonterra’s only site producing butter in the South Island.
