Meat processor, Alliance Group says 35 new jobs will be created when further improvements are made to its Dannevirke plant.
The meat co-op is investing a further $1.4 million in improvements at the southern Hawke's Bay plant as it seeks greater efficiencies in processing.
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It is re-configuring processing operations and investing in additional technology bringing total investment at Dannevirke to $12 million in the past year.
It said the improvements to the plant's lamb and sheep processing capabilities would increase the plant's capacity by 20 per cent.
Alliance chief executive, David Surveyor said the investment was part of the co-operative's Manufacturing Excellence Programme and was designed to meet the needs of North Island farmers.
"The investment will significantly improve the product flow through our further processing facilities and result in greater efficiencies at the plant.
It reflects Alliance's commitment to maximising the operational performance of our plant network for the benefit of our farmer shareholders and people, " he said.
The company would reconfigure product flows, install additional vacuum packaging capacity and introduce additional downstream labelling and strapping equipment.
It marks the next stage in the company's investment in the region and comes on top of Alliance investing $10.6 million in the latest robotic primal and middle cutting machinery at Dannevirke last year.
Surveyor said strengthening the processing capabilities at Dannevirke enables the co-op to respond to the needs of farmers in the lower North Island.
"Increasing capacity, driving efficiencies and lower costs means we can pass these gains onto our farmer shareholders. As a co-operative, we are focused on maximising the value created for New Zealand farmers."
He said the investment also represented a vote of confidence in the local communities and the region.
"This is a major boost to the Dannevirke community. We're a major employer in regional New Zealand. Nearly 5,000 people work for Alliance all over the country and we also provide work and income for a significant number of local contractors and service providers."