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Freedom Foods is raising $200 million to boost the capabilities and capacity of its plants in NSW and Victoria, and to accelerate its growth strategy.

A total of $120m will go towards factory upgrades – such as enabling the producton of yoghurt and a new plastic bottle capability – and another $75 million of the capital will go on adding balance sheet flexibility for growth, including working capital requirements and potential acquisitions and alliances.

The company already has the largest UHT processing capability in Australia, and says it's seen "a significant increase in forward demand” for its branded products.

The funds raised will provide for an acceleration of capacity to meet increased demand for UHT dairy formats; new packaging and product formats including a plastic bottle capability and yoghurt; and increased investment in capability to produce a range of high value added nutritional products, the company said.

“The capability will include a significant expansion of protein fractionation and drying capability, and blending and packing capabilities for sports, adult and infant nutrition products,” Freedom Foods said.

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