Tokoroa is a step closer to becoming home to a new state-of-the-art dairy processing plant with the lead contractor being appointed to construct the facility.

Ofi has appointed GEA New Zealand Ltd (GEA), with First Principles Contractors as a building partner, to construct its dairy plant in South Waikato.

The company says the factory will include technology designed to reduce pollution, minimise water and energy use and ensure waste is handled in the most sustainable way possible.

Paul Rennie, operations director for ofi in New Zealand, says the company is delighted to work with a partner of GEA's calibre.

'GEA has a proven track record of developing sustainable solutions for sophisticated production processes, which aligns directly with our goal of building a plant that operates as sustainably as possible.

'The new facility will place Tokoroa at the forefront of advanced dairy product processing and technologies, open up new options for farmers in South Waikato and create career opportunities for local people.”

He says the project is expected to involve up to 300 construction workers during peak phases of the build, which will be a boost for the local economy and a catalyst for wider investment in the community.

The new plant, expected to be ready in the third quarter of 2023.

It will be developed in stages, starting with a spray dryer with a capacity of one million litres of milk per day, and capable of producing more than 45,000 tonnes of milk powder annually.

A second phase of construction will see more facilities added to extend the range of high value dairy ingredients that can be manufactured at the site.

Rennie says ofi greatly appreciats the support of local stakeholders, including Powerco, which has been assessing power options to support the infrastructure of the plant, and the South Waikato District Council.

Greg Martin, GEA Senior Director, Liquid and Powder Division, says the plant has been designed to optimise productivity, flexibility, and sustainability and will support local manufacturing.

ofi is taking expressions of interest from farmer suppliers, including those looking for winter milk supply options, as well as local employees, contractors and trade suppliers.

When fully operational, the plant is expected to generate 50 to 60 full-time jobs, with more anticipated in the future.

The development will include a plant nursery to grow native plants for farmers' riparian planting projects, which will be irrigated by site water.

Clearing of the site is underway in preparation for the first stage of works to begin.

They are also exploring renewable energy sources to power the facility.