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Synlait can make twice amount of IF with new Wetmix kitchen

Operational Update6 December 2017SMLConsumer Staples

Synlait Milk Ltd
1028 Heslerton Road

RD13, Rakaia 7783

Private Bag 806

Ashburton 7740

New Zealand

P +64 3 373 3000

www.synlait.com Page 1 of 2

SYNLAIT MILK LIMITED NZX: SML

ANNOUNCEMENT ASX: SM1

7 DECEMBER 2017

SYNLAIT CAN NOW MAKE TWICE THE

AMOUNT OF INFANT FORMULA POWDER

WITH NEW WETMIX KITCHEN

Synlait Milk (NZX: SML; ASX: SM1) has today officially opened its new Wetmix

kitchen, which will enable it to simultaneously run both large-scale infant formula

spray dryers.

This will double the amount of infant formula powder which can be produced at the

Dunsandel site, from 40,000 metric tonnes (MT) to 80,000 MT per year.

“We were at the point where our current Wetmix facility was at capacity, and our

consumer demand was continuing to grow. Building this new Wetmix kitchen will

relieve that pressure,” says John Penno, Managing Director and CEO.


Synlait has invested $37 million in the new Wetmix kitchen, which is at the core of

the production process.

It’s where the dry ingredients (such as dairy proteins, carbohydrates, vitamins and

minerals) are mixed into the liquid milk. That mixture is then sent to the dryer,

where it is dried into infant formula base powder.

Mixing the dry ingredients into the liquid milk before drying ensures a superior

blend quality.

The project has been in planning since December 2015 and contractors began work

on site in February 2017. At times there were up to 125 contractors on site per day,

but the construction of the Wetmix kitchen did not disrupt the activities of other

areas on site.

“We’re really happy with how the build went,” says Mr Penno “it was a smooth

process which was completed on time and within budget, without the need to alter

our day-to-day operations.”


Synlait Milk Ltd

1028 Heslerton Road

RD13, Rakaia 7783

Private Bag 806

Ashburton 7740

New Zealand

P +64 3 373 3000

www.synlait.com Page 2 of 2

Designed with staff in mind, some manual steps (e.g. lifting and tipping large bags

of ingredients) have been reduced with the help of automation. This creates a safer

environment and provides operational efficiencies.

“It was really important for us to make this new facility as user-friendly as possible.

We want our employees to be safe at work, and to work under the best possible

conditions,” he says.

ENDS



For more information about Synlait, visit www.synlait.com

or contact:


Jessica Horne

Communications Advisor, Synlait Milk

P: +64 3 373 3353

E: jessica.horne@synlait.com

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