Australia’s Pactum Dairy has unveiled a new $42m UHT milk processing plant in Shepparton, which involves an investment of $950,000 by the Victorian Coalition Government.

The new plant will have the capacity to process around 100 million litres of milk over the next three years, by bringing economic benefit to the region and Victoria.

The project, which had already created 35 full-time jobs, is expected to bring the number of jobs to 52 in the next three years.

Of the $950,000 government funding, $700,000 was from the Industries for Today and Tomorrow programme to support the development of the plant, while the remainder $250,000 from the government’s $1bn Regional Growth Fund was used in the extension and connection of natural gas to the Shepparton site.

Victoria Deputy Premier and Regional and Rural Development minister Peter Ryan said that the Victorian Coalition Government’s investment has helped attract a business to Shepparton which could otherwise have gone elsewhere.

"This investment is a win for the Shepparton and we’re proud to be part of it," added Ryan.

Pactum Dairy has the capacity to export up to $37m worth of produce to the Chinese market, while generating overall sales of around $100m.