Fonterra has signed up to a new partnership in Europe to build cheese and dairy ingredients plants in the north of Holland.
The dairy co-operative has reached agreed the deal with Netherlands-based food group A-ware which will operate the cheese plant.
Fonterra will run the ingredients plant on the same site processing whey and lactose from the cheese making into nutrition ingredients for the international market.
Construction of both plants is scheduled to be completed in late 2014.