Facilitating Foreign Direct Investment: The Allied Faxi (Baxi) Ice Cream Factory in Hauraki District
How Eastern Bridge facilitated a NZD $30 million Chinese investment into the Hauraki District — transforming a dormant dairy site into a modern export food manufacturing facility and generating over $5.85 million in annual regional economic impact.
A Region Seeking Reinvestment — and a Chinese Company Seeking Quality
The Hauraki Plains have historically been a major centre of New Zealand dairy production. The closure of the large Kerepehi dairy factory in 1991 removed a significant source of regional employment and industrial activity, triggering population decline, loss of local employment, and reduced economic activity across surrounding rural communities.
In the early 2010s, Hauraki District Council sought to attract new industry to the region. A significant opportunity emerged when a Chinese agribusiness group expressed interest in establishing an ice cream manufacturing facility in New Zealand.
The company was Allied Faxi Food Company, a subsidiary of Beijing Capital Agribusiness Group — one of China's major state-owned agricultural conglomerates. Its ice cream brand Baxi is widely recognised in northern China, particularly in Beijing and surrounding provinces.
Why New Zealand?
Source Proximity
Processing dairy ingredients closer to their source reduced logistics costs and ensured high product quality.
Brand Premium
Producing in New Zealand allowed Baxi to associate with the "clean, green" reputation highly valued by Chinese consumers.
Available Infrastructure
The former Kerepehi dairy processing site offered existing industrial infrastructure at a fraction of greenfield development cost.
What Hauraki District Council Set Out to Achieve
Attract Anchor Investment
Secure a significant capital investment to revitalise the dormant Kerepehi dairy processing site.
Create Sustainable Employment
Generate long-term manufacturing jobs for local residents in a region with limited employment alternatives.
Verify Investor Credibility
Conduct thorough due diligence to confirm the legitimacy and financial capacity of the Chinese investors.
Build a Long-Term Relationship
Establish a foundation for ongoing economic and cultural ties between Hauraki District and Chinese business partners.
Bridging Culture, Language, and Commercial Expectation
Eastern Bridge was contracted by Hauraki District Council to assist with migrant engagement and Asian business liaison. Through this role, Eastern Bridge became directly involved in facilitating communication between the Council and the Chinese investors over an 18-month engagement process.
Cultural & Language Mediation
- Mandarin interpretation during all meetings
- Translation of technical documentation
- Cultural advisory to avoid misunderstandings
- Trust-building between parties
Due Diligence & Verification
- Corporate background checks
- Industry reputation assessments
- Verification of company ownership
- Confirmed state-owned enterprise status
Strategic Engagement
- Worked with the Mayor and economic development team
- Developed structured engagement plan
- Coordinated with local stakeholders
- Managed investor expectations
Delegation to Beijing
- Facilitated delegation of Mayor, Councillor, and Economic Development Manager
- Arranged meetings with Allied Faxi chairman and directors
- Ensured culturally appropriate communication
- Discussed investment, production, and site selection
The Beijing Delegation
- Mayor of Hauraki District
- A District Councillor
- The Economic Development Manager
- An Eastern Bridge representative
- Meetings with Allied Faxi chairman and directors
- Discussions on investment requirements and production planning
- Site selection and export logistics confirmed
Eastern Bridge strongly advised that the investors engage New Zealand-based engineering and consulting firms. Although this recommendation initially faced resistance due to higher costs, the advice proved essential — without local expertise in building compliance, environmental regulations, and infrastructure planning, the project would likely have faced major delays.Simon Appleton — Eastern Bridge Limited
A $30 Million Investment and Its Ripple Effects
Construction Phase Spending
The $30 million capital investment was distributed across a wide range of regional businesses and sectors during the construction phase:
Employment & Annual Payroll Impact
Once operational, the factory created approximately 50–55 full-time jobs, most filled by local residents. Based on an average manufacturing wage of $65,000 per year, the total annual payroll is estimated at $3.25 million.
Household Spending Distribution
Employee wages circulate through the local economy. Applying a typical household spending distribution to the $3.25M payroll:
With 85% of wages spent locally: $3.25M × 85% = $2.76 million circulating annually in the Hauraki economy.
Economic Multiplier Effect
Total Economic Impact Summary
Estimated Regional Economic Contribution
Transforming a Dormant Site Into a Regional Economic Asset
Capital Investment Secured
A NZD $30 million facility was established at the former Kerepehi dairy processing site, revitalising dormant industrial infrastructure.
Permanent Jobs Created
Approximately 50–55 full-time manufacturing positions were created, most filled by local Hauraki residents.
Annual Export Revenue
The factory produces premium Baxi ice cream for export to China, generating significant annual export revenue for the New Zealand economy.
Dairy Market Competition
The factory created a new buyer for local dairy products, introducing competition into a supply chain previously dominated by Fonterra.
Wider Regional Effects
Population Stabilisation
New employment helped stabilise the local community. In some cases, returning residents moved back to the area for work.
Infrastructure Upgrade
Council investment in water treatment upgrades enabled industrial-scale food processing and increased the district's attractiveness for future investment.
Business Confidence
The investment signalled that international companies were willing to invest in regional New Zealand, increasing confidence among local businesses and investors.
Strategic Lessons from the Allied Faxi Investment
Cultural Understanding Is Non-Negotiable
Cross-cultural communication was critical at every stage. Without a trusted intermediary, the investment would not have progressed past initial discussions.
Due Diligence Protects All Parties
Verifying that Allied Faxi was backed by a major state-owned enterprise gave the Council confidence to invest in infrastructure upgrades and commit to the project.
Local Expertise Cannot Be Substituted
Insisting on NZ-based engineering and consulting firms — despite investor resistance — was essential for compliance, regulatory approval, and project completion.
Regional Councils Can Unlock Major Opportunities
Proactive local government engagement, combined with the right advisory support, can attract investment that transforms regional economies.
Facilitate Investment in Your Region
Eastern Bridge can help local governments and iwi identify, assess, and facilitate international investment opportunities — with the cultural and commercial expertise to make them succeed.