Warrnambool Cheese and Butter Factory (WCB) has announced that its planned joint venture with Friesland Foods Domo is now proceeding on an unconditional basis.

The Australian firm said construction of a new plant had just begun, with production expected to begin in January 2009. The new venture is to trade as Great Ocean Ingredients.

Warrnambool and Dutch group Friesland Foods Domo entered a memorandum of understanding regarding the joint venture, which will make nutritional and functional ingredients, in February.