MG invests $19.1 million in Leongatha UHT

Murray Goulburn Co-operative (MG) has announced a $19.1 million upgrade to its Leongatha plant, increasing the site’s UHT manufacturing output by 70 million litres each year.

The Leongatha upgrade is part of MG’s planned $200 million investment in leading-edge dairy food manufacturing facilities for UHT milk, butter/spreads and cheese.

MG Managing Director Gary Helou says the company is making the significant investment in its Leongatha plant to meet increased demand for UHT milk.

“The demand for Australian dairy products is growing rapidly,” Helou said. “To meet the demand for UHT milk, we realised we had to make the upgrade at Leongatha now.”

According to Helou, the expansion and upgrade of the company’s UHT manufacturing footprint has been prioritised as the business is currently operating at capacity.

“The Leongatha upgrade will help MG meet immediate demand for UHT milk from world markets, particularly Asia, while the long-term strategy is confirmed. It will also help us to lift our supplier/shareholder returns.”

Work on the Leongatha upgrade will begin in late April and is expected to be completed by December 2013.