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- Keytone Dairy (KTD) says clients are hungry for its products following completion of the company’s new snack and bar plant in Preston, Sydney
- The facility has undergone upgrades over the past year and was commissioned in August ahead of trial runs for clients this month
- KTD has received higher-than-expected opening orders, in excess of $2 million, from existing clients
- The specialist healthy snack and protein bar manufacturer anticipates further orders from new clients in the near-term
- Shares are up 4.35 per cent at 12 cents at 11:57 am AEST
Keytone Dairy (KTD) says clients are hungry for its products following completion of the company’s new snack and bar manufacturing plant in Preston, Sydney.
The state-of-the-art facility has undergone significant upgrades over the past year and was commissioned in August ahead of commercial trial runs for clients commencing this month.
The refitted plant specialises in the production of sports and cereal bars, and healthy snacks including protein balls, while maintaining its fudge and confectionary manufacturing capability.
The company initially took over the operation after acquiring the asset from Ausconfec in May last year.
The facility has since been fitted with German-made Sollich equipment, with KTD’s capital expenditure totalling $2.5 million, offset by an $800,000 manufacturing modernisation grant from the Australian Government.
Following the upgrade, KTD has reported opening orders in excess of $2 million, which it is set to produce in the coming months, from its existing client base.
Keytone CEO Danny Rotman said the sales pipeline and interest in the plant was much bigger than the company had anticipated.
“The receipt of incredibly strong initial orders from multiple clients at the opening of Keytone’s bar and snacking line completely validates the strategic decision undertaken by the company to round out its manufacturing capability in this area,” he said.
“This plant has some exciting capabilities and in-market firsts in Australia for bars and snacking, for the benefit of our own proprietary brands and those of our clients.”
Keytone expects clients’ appetite for its snacks and bars to grow, with further orders from prospective clients anticipated in the near term.
Shares were 4.35 per cent sweeter, trading at 12 cents each at 11:23 am AEST.
