Freedom Foods Group has announced it has entered into an agreement to acquire land adjacent to the Pactum Dairy site in Shepparton Victoria.
The company will acquire approximately 77,400 square metres of land and the acquisition price is approximately $4 million, but is subject to final adjustments.
Freedom Foods managing director, Rory Macleod said the land provides capacity and flexibility for longer term warehousing and distribution requirements for the Pactum Dairy operation. He said the existing warehouse capacity on site and adjacent to the site is insufficient for long term requirements.
Additional warehouse capacity will provide space for future expansion of processing and packaging operations at the site and potential expansion of any other dairy processing capabilities in the future.
The $45m UHT dairy beverage facility opened in May, after a strategic supply agreement was announced between Shepparton based Pactum Dairy Group and China’s Bright Dairy, in April.
Production for China began in August, with production of U+, the first Australian based high quality dairy product manufactured for a major Chinese dairy company under its own brand.
Detailed planning for construction of an integrated warehouse and distribution facility is expected to begin during 2015 and final settlement will occur in September 2015.
It’s expected that the plans will be funded from existing finance facilities and other assets.