New Zealand dairy group Fonterra and Netherlands-based A-ware Food Group have finalised a deal to develop a cheese and ingredients plant.

The joint venture agreement was originally announced in May last year. The companies said in an announcement today (4 March) they have now received the green light to proceed and develop the greenfield site. The facility will be located in Heerenveen, in the north of the Netherlands. Construction is scheduled to be completed in late 2014.

A-Ware will operate the cheese facility, manufacturing products for its local customer base. Fonterra will operate the dairy ingredients business along side it, producing ingredients for its international customers.

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By GlobalData