- Consumer stock Synlait Milk (SM1) has settled a legal dispute over its New Zealand-based production facility
- The ASX 300-lister wouldn’t reveal how much the Pokeno plant settlement came down to, but confirmed it wasn’t material to the company
- The dairy specialist began producing its milk powders at Pokeno in September last year but came under fire when the previous landowners contested the operation
- The former owners alleged they placed covenants on the land to ensure it was only used for farming, forestry or lifestyle developments
- But Synlait hit back, arguing the land had been zoned for industrial use in a battle that reached the NZ Supreme Court in June
- Today’s settlement comes just one day after Synlait signed a manufacturing supply agreement with a mystery client
- Synlait shares rose 6.26 per cent into the green just before midday, trading for $5.09
Consumer stock Synlait Milk (SM1) has settled a legal dispute over its New Zealand-based production facility.
The ASX 300-lister wouldn’t reveal how much the Pokeno plant settlement came down to, but confirmed it wasn’t material to the company.
“Synlait and New Zealand Industrial Park are committed to working collaboratively for the benefit and integration of the Pokeno community and are pleased to have this behind us,” Synlait CEO Leon Clement announced today.
“We are also pleased to provide certainty for Synlait’s shareholders, customers, farmer suppliers and staff,” he continued,
The dairy specialist began producing its milk powders at Pokeno in September last year, but came under fire when the previous landowners contested the operation.
The former owners alleged they placed covenants on the land to ensure it was only used for farming, forestry or lifestyle developments.
But Synlait hit back, arguing the land had been zoned for industrial use in a battle that reached the NZ Supreme Court in June.
Now a settlement has been reached, the court has been notified.
Today’s news comes just one day after Synlait signed a manufacturing supply agreement with a mystery client.
Under the contract, set to enter commercial production in mid 2022, Synlait will oversee the creation of a nutrient product range for “a global category leader”.
Synlait shares rose 6.26 per cent into the green just before midday, trading for $5.09 at 11:54 am AEDT.