Fonterra, a New Zealand-based dairy co-operative, is set to expand slice-on-slice cheese capacity at its site in Eltham, Taranaki, with an investment of NZ$32m.
The slice-on-slice cheese is primarily used in quick service restaurants for products such as hamburgers and sandwiches.
Scheduled to start in early 2014, the expansion is expected to be completed in mid-2015, and will provide Fonterra with increased capacity and improved processes to cater to the global demand from its foodservice customers.
Fonterra Foodservice director René Dedoncker said that the investment demonstrated the co-operative's drive to grow its business in the high-value foodservice industry.
Dedoncker added, "Our foodservice business has grown 9 per cent in volume over the past 3 years and the profitability of foodservice has increased 11 per cent in the same period.
"This investment in slice-on-slice cheese is in response to fast-growing demand throughout Australasia, Asia and the Middle East."
Strengthening its foodservice business is Fonterra's one of the seven strategic pathways and the co-operative had outlined growth targets for the next five years.
