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:
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:
+61 2 9697 7008