A2 Corporation (A2C), an Australia-based dairy company, has commissioned a new milk processing plant in Sydney.

The new facility is expected to help the company to catch up with the increasing demand for its a2 brand of milk and milk products.

A2 managing director Geoffrey Babidge said the company has experienced continued growth of a2 brand fresh milk in Australia in response to increased customer awareness and ongoing marketing activity.

"The monthly sales track has continued to climb in the most recent quarter ended 31 March 2012 and this new facility at Smeaton Grange in South West Sydney provides surety of supply and will enhance the Company’s financial returns as the business continues to grow," Babidge added.

"The commissioning of Smeaton Grange represents a further significant milestone for A2C.

"The Company continues to be focused on its three core growth initiatives: building the beverages business in Australasia; capturing niche shares in global milk markets, including the UK launch of a2™ brand fresh milk in September with Robert Wiseman Dairies; and developing infant formula and other products in highly prospective markets."

The new milk processing unit has capacity to fulfill the market demand for the company’s products in New South Wales region.

Production volume of the plant can be upgraded to meet the future demand and the unit will also fulfill demand across the country.

A2 has invested AUD8.4m ($8.6m) in the processing unit. The company has secured the investment from a prior capital raising and an asset finance facility.

The plant has been constructed under a long term lease agreement with an option to purchase.

a2 Milk is pure fresh milk from cows specially selected to produce only A2 beta-casein protein, the ‘original milk protein’ which all dairy cows produced prior to a natural genetic variation which occurred several thousands of years ago which led to the appearance of A1 beta-casein protein in dairy herds.