A2 Corporation plans to change its constitution to allow the company to move from the second board to the NZX main board.

A2 Corporation is to set up a milk processing facility in Australia, at an estimated capital cost of $A7.5 million ($10.1 million).

The project, which included a purpose-built factory in south western Sydney, would support the growth of wholly-owned subsidiary A2 Dairy Products Australia.

Planning had been under way for more than a year, A2 said today.

Funding would be from a combination of equity and an asset finance facility provided by the company's bankers.

A2 Corporation will fully take over its US-based marketing arm offering its joint venture partner a small stake in the parent company.

The company, which owns and licenses technology to identity milk with the A2 beta casein protein which it claims has health benefits, will acquire the remaining 50% stake in A2 Milk Company LLC in the United States.

Originally the company was a JV with health supplements entity Idea Sphere Inc (ISI). It was established to drive the introduction of products in North America.

Following internal structural changes, A2 Corporation chief executive Scott Pannell has accepted a redundancy offer from the company.

The company, which owns and licenses technology to identify milk with the A2 beta casein protein which it claims has health benefits, recently bought the remaining 50% of A2 Dairy Products in Australia.

As part of the conditions alongside the acquisition was the appointment of Geoffrey Babidge as A2 Corporation’s managing director.

The NZAX may be about to lose another listing, with A2 Corporation looking to move to the ASX if a merger with Australian-based Freedom Nutritional Products goes ahead.

Merger discussions have been launched between the two companies, with the aim of an all scrip-based ‘merger of equals’ that would see the surviving entity listed on the ASX.