Russian Nutritek acquires New Zealand Dairies shares

The Russian Nutritek Group has acquired 51,52% of the shares in New Zealand Dairies Limited (NZDL) to become the first overseas investor to gain control over a New Zealand milk processing business valued above US$100 million (£64m).

Nutritek also has firm agreements in place to continue increasing its shareholding in NZDL over the next 12 months.

George Sazhinov, chairman of Nutritek, says that gaining a controlling stake became a new milestone in the implementation of the Groups strategy in investment in Asia-Pacific region. Nutritek will be proceeding with plans to add further production facilities to the NZDL plant at South Canterbury, and to develop high-technology and high value-added products in New Zealand.

Sazhinov adds that he highly appreciates the support received from local farmers, who concluded long-term milk supply contracts with NZDL and from the local community. He further notes that he is confident that the Russian investor will establish itself in New Zealand business community.

The NZDL plants first stage milk processing capacity is 150 thousand metric tonnes per year which enables the production of 18,000 metric tonnes of milk and assures Nutriteks sales in South-East Asia of about $200 million (£129m) in 2009.