Auckland Airport will build a new distribution facility for Fonterra’s New Zealand consumer business.

The dairy producer, Fonterra, has signed up for a long-term lease on the 11,000 square metre facility on Timberly Rd at Auckland Airport’s industrial business park, The Landing. They are expected to occupy the premises starting March 2017. The centre will enable Fonterra to consolidate multiple existing warehouses into a single, multi-temperature space.

“We are thrilled to be partnering with Fonterra to provide facilities that will directly benefit its customers,” said Auckland Airport’s general manager, Mark Thomson. “This is a long term relationship that complements our existing asset base and customer mix.”

Fonterra’s managing director, Leon Clement, said they are looking forward to moving to the new facility at the airport as it will consolidate seven warehouses, four of theirs and three from third parties, into one, optimising storage. It will also reduce complexity in freight movements.

“Our new distribution centre, which will be purpose built for us, will help us deliver a step change in service to our export and domestic retail and foodservice customers,” Clement said. “Having a single dispatch point in Auckland for all our dairy products, except ice cream, will greatly improve the efficiency of our North Island supply chain operation – for example, instead of supplying a customer order from two or three DCs we will be able to supply it from one, reducing movements on busy roads and improving service levels for customers.”

“We operate in a high demand category and having the latest warehouse technology will also enable us to meet our customers’ expectations around the product mix they want when they want it.”

FBNZ will lease the building from Auckland Airport, but will be responsible for its operation.

The Landing provides easy access to a range of social and leisure activities.