Fonterra has announced it will build its newest plant in The Netherlands as it looks to further establish itself in Europe.

The plant will operate 24 hours a day, 365 days of the year, producing 25,000 metric tonnes of lactose and 5000 metric tonnes of whey protein each year.

Being built on a 25-hectare site in the country's north, it will mark the first time the dairy giant has fully owned and operated its own factory in Europe.