Chinese-owned Blue Lake Dairy Group has opened an infant formula production facility in Tantanoola, South Australia.

The AUD15m (US$11m) plant will initially have the capacity to produce 20,000 tonnes of formula and, when full production starts, the facility will employ 60 people. 

The opening is the first development in a two-phase AUD65m investment plan. Stage two will see BLDG open a new AUD50m milk powder factory. 

Wang Xin Xiang, managing director of BLDG, said the company is preparing to begin work on the milk powder site when it gets the go-ahead from local regulators. “The BLDG are looking forward to continuing their investment in South Australia and in their milk processing facility with the approval process for stage two of the BLDG project, a new milk drying facility, expected to commence incoming months.”

The opening ceremony, held earlier this week, was attended by South Australia premier Jay Weatherill. BLDG’s investment attracted the support of Investment Attraction South Australia. 

Weatherill said BLDG’s investment is expected to provide “significant economic benefit” to the local economy.

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BLDG was formed by Chinese investors in 2015 and plans to export milk powder products to China.