Fonterra is to invest another $30 million into its Whareroa site in Taranaki.
The money will go towards expanding its Dry Distribution Centre and follows a $23 million upgrade of the coolstores there last year.
This will bring the total capital investment in the logistics infrastructure on site to $50 million since 2011.
Fonterra says the project is part of its overall drive to simplify the supply chain and reduce costs.
Construction is expected to be complete by August next year.