KEYTONE DAIRY ACQUIRES OPTION TO PURCHASE ADDITIONAL LAND IN NZ
- Option agreement signed between Keytone Dairy and Selwyn District Council providing Keytone an option to acquire adjacent land to its existing properties in Izone Southern Business Hub (Christchurch)
- The option is to acquire 3,830m2 of industrial land
- There is no cost to the option
- If exercised, provides additional land for production capacity as product range is expanded
- Option has been negotiated in line with Keytone Dairy’s medium-term capacity expansion initiatives
Keytone Dairy Corporation Ltd (ASX: KTD) (“Keytone Dairy” or the “Company”) is pleased to announce that in line with its four-pillar growth strategy, it has signed an option agreement to acquire an additional parcel of 3,830m2 of industrial land known as ‘Lot 5’ in Izone Southern Business Hub, one of New Zealand’s largest industrial parks. Lot 5 is in addition to the two blocks of land currently owned by Keytone Dairy in Izone.
The option agreement has been signed to enable Keytone Dairy to:
- Acquire additional land for further capacity roll out, as it develops its product range
- Facilitate the future potential of a larger integrated and purpose-built manufacturing facility across three owned blocks of land (each adjacent to the other) with multiple road access points, allowing for seamless drive-through distribution logistics
- Achieve economies of scale
The option has no upfront cost and the following key terms:
- Keytone Dairy has six months to determine whether to exercise its option to acquire the land
- A deposit of 10% is payable once the option is exercised and the agreement to acquire the land becomes unconditional
- The purchase price of the land is NZD580,000 plus GST
- The final balance is payable 4 months after ‘confirmation’ of the agreement
Ketyone Dairy currently owns two lots of industrial land in Izone, Lot 8 and Lot 9, with construction of the second manufacturing site currently ongoing on Lot 8. Should the Company exercise its option over Lot 5, it will own three blocks of adjacent land at Izone and continue to lease its existing facilities at Sockburn Industrial Park, thereby providing it with potential to operate four manufacturing facilities in the medium term.
About Izone Southern Business Hub
The Izone Southern Business Hub is 188 hectares of zoned industrial land, located just south of Christchurch, home to 120 businesses. Izone is one of New Zealand’s largest industrial parks and has been strategically selected by Keytone to maximise efficiency and productive capacity. Izone offers access to state-of-the-art infrastructure, including all modes of transportation and Port of Tauranga’s new intermodal freight hub – Metroport Christchurch – making it ideal for export/import, freight forwarding and manufacturing businesses. Izone is on State Highway One, a twenty minute drive from Christchurch International Airport and forty minutes from the Port of Lyttelton. Further, it is located at the junction of the South Island’s two main railway lines (the Main Trunk and Midland Railway Lines) meaning goods are easily transported not only north and south but east and west.
About Keytone Dairy Corporation Limited
Based in Sydney, Australia and Christchurch, New Zealand, Keytone Dairy is an established manufacturer and exporter of formulated dairy products. In addition to Keytone Dairy’s own brands, the company is a trusted production partner, contract packing for well-known brands in New Zealand and internationally. Keytone’s purpose built dairy production facility offers a wide range of dairy and nutrition packing solutions, meeting the diverse needs of consumers from different markets and cultures.
Keytone Dairy’s facility is certified with the New Zealand Ministry of Primary Industries, and Keytone holds a Certification and Accreditation Administration (CNCA) of the People’s Republic of China manufacturer registration, thereby enabling export of Keytone’s products to China. In addition, the facility holds a Halal certification from the Federation of Islamic Associations of New Zealand (an accredited body recognised by Islamic countries worldwide). Please visit www.keytonedairy.com for further information.
For more information please visit: https://www.keytonedairy.com/
For further information please contact:
Rod North, Managing Director
Bourse Communications Pty Ltd
T: +613 9510 8309, M: +61 408 670 706