A multimillion-dollar expansion of Fonterra’s Whareroa site near Hawera will help the dairy giant streamline production.
Fonterra director of logistics Mark Leslie said the $30 million development of the dry distribution centre, at the company’s second- largest New Zealand site, was part of a drive to simplify its supply chain and reduce costs.
«Our capacity to process milk continues to increase, which means that our storage capacity must grow to meet this. Where possible we want to store product at the point of manufacture to reduce costs.»
Mr Leslie said although the expansion would be «job neutral», contractors would be needed while the work was done.
Construction is expected to be completed by August next year.
«This investment at our Whareroa facility will improve our logistics network’s storage capacity and address existing capacity constraints in the region,» he said.
«This means we are able to reduce the number of freight movements from where a product is manufactured through to delivery to the customer, which reduces our carbon footprint and ultimately saves on transport costs.»
Source: Stuff
