The improvements to the plant’s lamb and sheep processing capabilities will increase capacity by 20%.
The company will re-configure product flows, install more vacuum packaging capacity and introduce more downstream labelling and strapping equipment.
As a result of the changes Alliance expects to employ about 35 extra staff at Dannevirke.
It marks the next stage in the company’s investment in the area and is on top of Alliance investing $10.6m in the latest robotic primal and middle cutting machinery at Dannevirke last year.
Chief executive David Surveyor said the investment is part of the co-operative’s Manufacturing Excellence Programme designed to meet the needs of North Island farmers.
“The investment will significantly improve the product flow through our further processing facilities and result in greater efficiencies at the plant.
“It reflects Alliance’s commitment to maximising the operational performance of our plant network for the benefit of our farmer shareholders and people.
“Strengthening our processing capabilities at Dannevirke enables us to respond to the needs of our farmers in the lower North Island. Increasing capacity, driving efficiencies and lower costs mean we can pass these gains on to our farmer shareholders.
“This is a major boost to the Dannevirke community. We’re a major employer in regional New Zealand. Nearly 5000 people work for Alliance all over the country and we also provide work and income for a significant number of local contractors and service providers.”
