NZ dairy producer Synlait Milk sells North Island assets to refocus operations

Alsharq Tribune-Otaify 

New Zealand dairy producer Synlait Milk has completed the sale of its North Island operations, marking what it calls a "turning point" in its back-to-basics recovery plan.

The New Zealand's Stock Exchange-listed firm, majority owned by China's Bright Dairy, sold its Pokeno manufacturing site, inventory and leased Auckland blending and warehouse facilities for 307 million NZ dollars, Synlait Milk said in a statement.

The firm expects to receive 283.1 million NZ dollars in gross proceeds, of which 200 million NZ dollars will go toward repaying bank debt.

Chief Executive Officer Richard Wyeth said the divestment would allow Synlait Milk to strengthen and simplify its business and concentrate production at its Canterbury base on New Zealand's South Island to "drive recovery forward."

The move follows manufacturing difficulties that led to an 80.6-million-NZ-dollar net loss in the half year ending in January 2026.

Wyeth said the company now aims to stabilize operations and return to a consistently high-quality infant formula output.

"Making advanced nutritional infant formula is relatively complex," with errors reducing high-value products to stock feed, he noted. (1 NZ dollar equals 0.57 U.S. dollar)