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a2 Milk™ processing facility to be constructed in Australia - The a2 Milk Company

Market announcements

a2 Milk™ processing facility to be constructed in Australia

December 20, 2010

A2 Corporation Limited (NZAX:ATM) is pleased to announce that it is to establish its own milk processing facility in Australia to support the growth of the wholly owned subsidiary, A2 Dairy Products Australia Pty Limited.

The planning for this project has been underway for over 12 months and involves:

  • Construction of a purpose built new factory in south western Sydney to be leased under a long term arrangement including an option to purchase;
  • Installation of state of the art milk processing and packaging equipment designed to deliver superior product quality and production cost efficiencies; and
  • A factory design of appropriate size to efficiently process current fresh milk volumes for the NSW market yet provide for significant growth in the medium term.

Product for markets in other Australian states will continue to be sourced from existing valued external processors.

Equipment suppliers have been selected following a comprehensive tender process.

The project provides for commissioning during 4th quarter 2011.

The project has an estimated capital cost in the order of A$7.5 million, which is to be financed by a combination of equity and an asset finance facility provided by the Company’s bankers.

As a result of the commitment to this project, the Company is also pleased to announce that it will raise new equity capital by way of a share placement to two existing shareholders, AMP Capital Investors (New Zealand) Limited and Freedom Foods Group Limited to raise a total of NZ$3.9 million.

The Company is very pleased with the endorsement of the milk processing facility and support from these two cornerstone shareholders.



For more information please contact:

GH Babidge
Managing Director
+61 2 9697 7008


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