Canterbury Milk processor Synlait has suffered a 76% drop in half-year net profit as it battles Covid-related volatility and rising dairy prices.
Synlait has announced that it has reached an agreement with NZ Industrial Park and its owner Karl Ye.
Further details of the settlement agreement will not be disclosed due to confidentiality, but the Canterbury processor says the settlement price was reasonable and not material to Synlait.
“Synlait and New Zealand Industrial Park are committed to working collaboratively for the benefit and integration of the Pokeno community and are pleased to have this behind us,” says Synlait chief executive Leon Clement.
“We are also pleased to provide certainty for Synlait’s shareholders, customers, farmer suppliers and staff.”
In February last year, Synlait announced the conditional purchase of 28 hectares of land in Pokeno to establish its second nutritional powder manufacturing site.
In November, the High Court removed covenants over the land which would hinder Synlait's development of the land. Synlait then took ownership of the land.
In May 2019, the Court of Appeal overturned the High Court decision to remove historic covenants. Synlait then filed an appeal in the Supreme Court.
Synlait says the Supreme Court has been informed that a settlement has been reached.