The Gore District Council is set to receive $958,000 after it signed an agreement with Mataura Valley Milk yesterday.
The agreement confirmed the company’s financial contribution for its premium nutritional processing plant in McNab.
The payment will occur over the next four years.
The agreement was signed by Gore District Mayor Tracy Hicks and China Animal Husbandry Group president and Mataura Valley Milk (MVM) chairman Dr Tingwu Xue.
While signing the agreement, Mr Hicks passed on his sincere gratitude to Dr Xue for the contribution to the area.
“You see your part in the Gore District is bigger than just business.
“It’s wonderful to have you in our part of the world again,” Mr Hicks said.
The council would look at using the financial contribution for the upgrade of the Gore library.
“In keeping with the wishes of the company, we will work with MVM to ensure its contribution is recognised appropriately.”
Mr Hicks said it was an incredible journey watching one of the world’s most technologically advanced nutritional plants take shape.
“For a small council, our staff have really stepped up to meet the challenges and complexities of such a project.
“It is always good to have investment in our district to provide employment and growth,” he said.
“However, it is also good to see a company willing to invest in areas of community good.”
Dr Xue was presented with a piece of greenstone and Hokonui Moonshine whisky.
The greenstone represented time past and communities coming together, which was significant for the pair, Mr Hicks said.
MVM and council agree on $958K contribution
From Page 1MVM chief executive Bernard May said both organisations should be extremely proud of how they worked together in the past three years.
The project was New Zealand’s largest investment in food processing for a start-up business.
Being involved in the region was a huge part of MVM’s identity, he said.
“For our business to be successful we need the support of the local community, we need to have local farmers as shareholders and local people working and supporting us,” Mr May said.
With the company’s initial investment of $226 million completed, growth in the supply of milk had led to work starting on the $5 million expansion of the milk treatment area.
That was due to be commissioned in August, he said.
Gore District Council chief executive Steve Parry said the payment came from the council’s financial contribution policy.
“It’s a council policy that we may ask for a contribution and the maximum is 0.5% of 1% of the cost of the development.
“It is only imposed on commercial and industrial buildings of $500,000 [or more] in value,” Mr Parry said.
MVM was an extremely large and unique development that required this process.
“It’s been a negotiated process which needed a discussion.
“It is done through an agreement and not a dictatorship, which is really nice.”
Discussions began in November last year when the MVM plant was declared open.