Overseas investment decision for case 201900535 - Synlait Milk Limited

• a freehold interest in 581.9698 hectares of land at 850 Heslerton Road, Dunsandel; and
• a paper road of approximately 2.4953 hectares  located between Heslerton Road and Sheats Road, Dunsandel, Selwyn

Theland Purata Farm Group Limited
Zhaobai Jiang, China, People's Republic of (99.0%)
Lei Jiang, China, People's Republic of (1.0%)

Selwyn District Council (for the paper road)

The Applicant seeks consent to acquire approximately 582 hectares of farm land that adjoins their milk processing plant in Dunsandel, Canterbury, and a paper road of approximately 2.5 hectares that adjoins the farm land and the milk processing plant (the Land).

The Applicant produces milk powders and nutritional products such as infant formula. The Applicant is one of the top 5 milk processors in New Zealand and employs over 900 staff, over 700 of which are at the Dunsandel milk processing plant. Since its establishment, it has made significant investment in New Zealand.

The Land was originally owned by a related company to the Applicant, but was later sold to the Vendor. An agreement between the Applicant and the Vendor allows water to be drawn from the water bores on the Land, and for processing water to be distributed over the Land as required. The agreement includes an option for the Applicant to acquire the Land, which has been exercised by the Applicant. The use of the Land is important for the processing plant’s operations. Owning the Land will give the Applicant greater control over the water rights and allow it to manage its operations more efficiently. The acquisition of the farm land will also give the Applicant opportunities to evaluate and trial sustainable farming practices and carry out on-farm research.

Following the acquisition of the Land, the Applicant intends to construct a rail siding which will allow them to transport product via rail and reduce the number of trucks they are using by around 16,000 traffic movements per year. The decision includes conditions requiring the construction of the rail siding. The Applicant is currently constructing significant additional storage facilities adjacent to the rail siding site which will be utilised for the rail project.