Devondale Murray Goulburn (MG), an Australia-based dairy establishment, is set to begin the production of a new range of dairy beverages at its Edith Creek manufacturing site in Tasmania, with an investment of over $14m.

Said to form a part of the company’s $127m capital investment plan announced in May 2014, the latest investment will be used by the company to replace the existing production lines with advanced technology, a move that will enable the company to grow.

According to the company, work at the plant is expected to commence in the new financial year, with operations slated to begin in mid-2015.

The company has also bought additional stake in the Tasmanian Dairy Products (TDP) joint venture (JV), to bring its share from 56% to 76%.

Mitsubishi will continue to hold the remaining 24% stake in the JV.

MG managing director Gary Helou said the combined investments further demonstrate the company’s commitment to Tasmania and support its aim to become the first choice dairy foods supplier nationally and internationally.

"It also represents an important step towards delivering on our commitment to significantly increase underlying farmgate returns for MG suppliers," added Helou.

Meanwhile, MG will train the existing employees to produce new products and will create several skilled jobs in the region.