Synlait has announced the completion of its strategic review of North Island assets, resulting in a decision to focus the Pokeno manufacturing facility solely on producing advanced nutrition products.
The review, conducted as part of Synlait's business recovery plan, considered various factors, including ownership structures and the facility's capability to process dairy and non-dairy hybrid nutrition products.
It was found that switching between plant-based proteins and dairy hindered the operational efficiency of the Pokeno plant, and the financial viability of milk processing at the site was also affected by transportation and manufacturing costs.
Synlait's board and management will not actively seek a buyer for Pokeno, but may consider a compelling offer for the asset.
The Dunsandel facility will continue to serve as the hub for dairy operations, and the company will meet all contractual obligations to its 54 farmer suppliers in the Waikato, including incentive payments.
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