Australian dairy Murray Goulburn is investing A$60m (US$54.8m) in opening a milk processing facility for its Devondale dairy business.

The five-hectare site will be located at Erskine Park in Sydney.

The move is part of Devondale's planned expansion in the region and is one of the two sites Murray Goulburn plans to open for the business in New South Wales and Victoria. Work has already started on the group's planned Melbourne-based processing plant, the company revealed.

"There is just over one year to go before we are scheduled to begin production and we are well on track to becoming the nation's most efficient producer of daily pasteurised milk," Devondale GM of operations Keith Mentiplay said.

"Erskine Park was an obvious choice for us. As well as excellent land quality and infrastructure, this location also gives us easy access to the major milk supply regions in NSW, to the north, south and west of Sydney."