New Zealand dairy cooperative Fonterra has announced the opening of a new AUD $150 million ($119 million) cheese plant in Australia which the company hopes will help meet growing demand.

The factory, based in Victoria, will replace the previous plant which was destroyed by a fire in December 2014.

The new cheese plant can process up to 1.3 million litres of milk every day as the company realises a growing demand for cheese domestically and in China and Japan.

Dalius Trumpa, chairman of Rokiskio Suris, said: “Fonterra is a leading global company, and by becoming a shareholder of Rokiskio Suris it lifts our company to the very different, global level.”