Source: Radio New Zealand
Synlait milk on the production line. Supplied/ Synlait
The sale of Synlait Milk’s North Island operations has been completed with the focus a back-to-basics approach, in order to return to a consistently, high quality production of infant formula.
The dairy company, majority owned by China’s Bright Dairy, planned to use the $283.1 million proceeds from the $307m sale to pay down debts and simplify its operations.
Synlait chief executive Richard Wyeth. Miraka
“This is an important turning point for Synlait. It will strengthen and simplify our business while giving us the space to drive our recovery forward with a focus on where Synlait was founded, in Canterbury,” chief executive Richard Wyeth said.
The sold assets included the Pōkeno manufacturing facility and associated inventory, as well as leasehold Auckland sites, including assets held at the blending and canning facility on Richard Pearse Drive and the leased warehouse facility on Jerry Green Street.
The company’s balance sheet had been hit by costs associated with the recent manufacturing challenges, which saw it report a first half net loss of $80.6m for the period ended January 2026.
Of the sale proceeds, $200m would be used to repay Synlait’s bank facilities, leaving its balance sheet in a strong operational position.
However, Wyeth said there was more work to do.
He said his focus was on achieving steady, high quality output, without exception.
“So we’re looking to simplify the business. We’re looking to stabilise the business. Then we can scale from there,” Wyeth said.
“Making advanced nutritional infant formula is relatively complex, and when it goes well, you get really good results.
“If it doesn’t go well that product goes straight to stockfeed as opposed to a high value product. That’s why that focus on operational performance is so important.”
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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand