“Nutritionals consistently deliver higher margins than milk powders and will lead to relatively higher pay-outs for our shareholders as well as placing Westland on pathway to a more secure and sustainable future,” he said
The dryer would create up to 36 new jobs in Hokitika.
The investment would build on the capability and commercial success of the upgrade to drier six last season, Quin said.
“The demand for nutritional products continues to grow; and, while China is a key market for these products, we also have significant contracts in Southeast Asian markets and Australasia that broaden our customer base.
“Many of our current customers are expected to increase their purchases as a result of this project.”
The new drier will allow Westland to produce an additional 23,000 tonnes of nutritional product each season.
It is expected to be commissioned in August 2015 and generate sales of $115 million a year.
The company was confident the resource consent application would be granted by the Westland District Council.
The hearing was held in Hokitika on March 25.
Westland invested in upgrading a dryer last season and was building a new boiler at Hokitika and investigating a possible milk processing plant at its Rolleston site.