A FORMER potato chip production plant in Penola will get a new lease on life as a state-of-the-art dairy processing facility.
Vic company Midfield Group will spend $60 million transforming McCain Foods' former facility into a new site with a focus on powdered milk for export.
The expansion will create about 80 jobs in construction and nearly 50 full-time positions in operation while supporting a further 110 industry jobs indirectly upon completion.
Premier Jay Weatherill said the development was welcome news for the dairy industry following the news UDP had fallen into administration.
“It will be the company’s first foray into the global dairy industry and the milk powder produced at the site will be targeted at exports markets that include China,” Mr Weatherill said
“Construction of the facility is planned to commence in the second quarter of 2015 and it is anticipated that the new plant will be operational by the middle of next year.
“About 80 jobs will be created during the year-long construction period, with the company planning to give preference to local suppliers and contractors.”
Mr Weatherill said that although there was a significant gap between the closure of UDP and the completion of Midfield Group’s development, the government was working with the industry to ensure its long-term viability.
The investment from the family-owned agricultural enterprise falls within the state government’s economic priority of producing premium food and wine from SA’s
clean environment.
“We have identified premium food produced in a clean environment as a key economic priority
for South Australia and this project is a good example of the benefits that can bring,” Mr Weatherill said.
“At its heart, our economic strategy is about the creation of jobs and this multi-million dollar expansion will see more than 160 direct and indirect jobs created in regional SA.”
Midfield Group’s managing director Colin McKenna said the company had a long history of supporting local communities that it operates within.
“We believe this project will add to the region by contributing to economic diversification and by creating access to new markets for existing or new economic activity,” Mr McKenna said.
“Penola is perfectly positioned to be the site of our company’s first dairy processing facility and we’re looking forward to commencing operations in 2016.”
Regional Development Minister Geoff Brock said it would be a much-needed boost for the dairy industry.
“It will not only be good for Penola and the south-east, but it will be of benefit to the state as a driver of economic development and jobs growth in our regions,” Mr Brock said.
“It’s another good example of an existing regional facility being re-developed and revitalised to stimulate economic activity in the regions and keep jobs in the local area.”
Once completed, the milk processing facility will initially have the capacity to produce both whole and skim milk powder, and will also include an Anhydrous Milk Fat (AMF) processing line.
Stage two of the project will involve the expansion of processing lines. As yet, no timeframe has been set for this.
The Midfield Group is made up of several specialised divisions that generated total revenue of almost $760 million in the last financial year. The company exports to more than 40 countries
and employs more than 1300 people.
More to come
