Thursday, 22 February 2018

Announcement

GENERAL: SML: Synlait can make twice amount of IF with new Wetmix kitchen

07 Dec 2017 09:56NZX
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."

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.
End CA:00311561 For:SML    Type:GENERAL    Time:2017-12-07 09:56:13
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