News

November 5th, 2010

Zoagn happy with key milestones for $100 million Arapuni milk powder plant

 ZOAGN Ltd, the specialist diary industry project development group, remains confident about its planned $100 million state-of-the-art milk powder processing plant at Arapuni in the South Waikato.

 This despite an appeal against the Resource Consent from local Iwi and the ongoing requirement  for further investment to get the project to final sign-off.

 Spokesman Richard Stapel today described both as ‘hiccups’ rather than impacting on the project’s future.

 “The Resource Consent appeal needs to be negotiated to achieve a resolution, while the global recession is making greenfields project capitalisation a difficult task, but we are actively discussing further investment with a range of  groups at present.

 “The Arapuni Milk project has achieved a number of milestones including the key milestone of being granted Resource Consent meaning the project is well positioned to move forward.

 “The Arapuni Milk project remains in the ownership of the original investors which includes the original developers, Waikato based ZOAGN”.

“Now with project consent process well advanced we are experiencing high levels of interest from investors for the Arapuni Milk project and we are also considering the option of bringing investment funds targeted for future projects, in earlier, to fund Arapuni Milk.

“Whichever funding option comes to fruition it is inevitable that Arapuni Milk will now experience a 3 – 6 month delay in the project construction start date making first milk processing date August 2012

 Mr. Stapel, who is in China at present, confirmed strong Asian interest in the project.

 “Nevertheless ZOAGN remains very confident about Arapuni Milk. “

 ZOAGN, (pronounced ‘zone’) founded by dairy technology specialist Rob Gifford and a group of investors and executives, announced the plans at a public consultation meeting in Arapuni last October.

 The small Arapuni community sits on the banks of the Waikato River and is best known for the Arapuni Hydro Dam on the town’s front step.

 The new plant is expected to take a year to build and be ready for full production by August 2012, with an intended processing capacity of 37,000 tonnes a year from 220 million litres of milk.

 With a population of just 300 Arapuni is expected to enjoy a major economic stimulus from the plant, which will assist in reviving some of the infrastructure businesses which had closed down such as garages and food outlets and would coincide with the opening of the planned $9 million Putaruru to Rotorua Cycleway Project, which will pass through the Arapuni River Trail.