Australia-based dairy food exporter Devondale (Murray Goulburn Co-operative) is set to establish a milk processing facility at Erskine Park in Sydney, with an investment of a A$60m ($54.5m).
Devondale had purchased a five-hectare plot within the 100-hectare western Sydney industrial park from industrial firm CSR, in June, for the new facility.
The new plant is one of the two facilities which have been proposed by the co-operative in April, as part of an effort to grow its pasteurized milk business in New South Wales and Victoria.
Devondale has commenced the construction of the processing facility in Melbourne, Victoria. The plant is being built alongside Devondale's existing Integrated Logistics Centre in Laverton.
The Australian farmer co-operative is seeking to grow its milk supply in the Sydney region in order to support the new processing plant and recently held farmer meetings in Bomaderry, Taree West and Maitland.
Devondale operations general manager Keith Mentiplay said that the new Sydney site was secured, work would soon begin on the new facilities.
"There is just over one year to go before we are scheduled to begin production and we are well on track to becoming the nation's most efficient producer of daily pasteurised milk."
"Erskine Park was an obvious choice for us. As well as excellent land quality and infrastructure, this location also gives us easy access to the major milk supply regions in NSW, to the north, south and west of Sydney."
Established in 1950, Devondale remains dairy farmer owned and is Australia's leading dairy food exporter under the Devondale brand.