International meat packing group Hilton Food is to proceed with plans to expand its packing capability to New Zealand.
Hilton said it would construct a new meat processing facility in Auckland and supply Progressive Enterprises Ltd, New Zealand's leading retailer, trading as Countdown Supermarkets.
The group said that as Progressive Enterprises was also part of Woolworths this development further strengthened Hilton's existing relationship with Woolworths.
It said: 'The development will take place as an extension of the existing site, and is subject to government approvals and the negotiation and finalisation of construction and tenure agreements.'
Hilton said it was proposed that its newly formed subsidiary, Hilton Foods New Zealand, would finance the new food packing facility, with commencement of production targeted for 2020.
It said the new facility would be capable of supplying Progressive stores in New Zealand with a range of beef, lamb, pork, chicken and added-value products.
It said it expected that Hilton's investment in plant and equipment would be approximately NZ$54 m.