A Tauranga UHT milk processing plant developed by Chinese businesswoman May Wang is being held up by dairy giant Fonterra.

The new UHT milk processing plant on Maleme Street.

The newly fitted Maleme Street factory in Greerton cannot start processing until it receives a milk shipment from Fonterra.

Fonterra is not commenting about the delayed milk shipments, saying the details are confidential.

Investors backing May Wang's bid for the Crafar family's 16 central North Island farms used the development of this Tauranga milk plant as a way to leverage support for the purchase.

According to May Wang and her investors, the rationale for developing the factory is because of a ready market in China already for UHT milk, which is not being met by existing suppliers in New Zealand.