Goat milk powder may not sound like a lucrative industry, but it could spell big bucks for Ashburton.

Chinese firm Fineboon has released plans to build a goat milk powder plant in the district, that will produce 15-hundred tins an hour.

Ashburton mayor Angus McKay says it's a massive coup for the area.

"They are not playing around. They are here for the long term and I congratulate them for coming to such a good district to do business."

McKay says the company's arrival provides a lucrative opportunity for the region's farmers.

"We have good water supplies and we have very innovative people in this district, that's what they've come to latch into.

"So they're actually taking the initiative to try and build a brand new industry for this district."

The plant will create around 20-jobs initially, but has the potential to grow larger as the industry expands.

The company hopes to break ground in the middle of this year.