Shareholders agreed to invest the money over the next three years at the Green Island mill, chief executive Henry Hawkins said.
A new machine to automate the packing of its oat sachet products was due to arrive on December 1.
The following week, a new boiler would arrive.
A grain intake would be upgraded and some silos would be removed and replaced before Christmas.
Further site refurbishment work would begin in January.
“The end of this year and all of next year will be a very busy time for all of us,” Mr Hawkins said.
The projects signalled growth of the business in Dunedin and its commitment to being an employer in the region.
“We have been here since 1867.
“There was a lot of discussion around if we needed to move to grow,” he said.
The talk was about moving the mill closer to its grain growers, somewhere between Dunedin and Gore, but a decision was made by shareholders to stay in the city.
Staff numbers would not be impacted by the installation of any new automation which would allow the company to meet demand from its customers.
Since the Covid-19 pandemic, people had shown greater support of buying New Zealand-made products and for eating healthy, affordable food.
“Oats are part of that. We’ve done well since that time,” he said.
About 95% of the oats milled at the site were grown in Southland and Central Otago.
The owners of Harraway & Sons were proud to be part of the South, Mr Hawkins said.
“A little ol’ New Zealand company, competing against global brands for shelf space is a great story for Dunedin and our growers, who work bloody hard.”
Marketing and product innovation head Peter Cox said Harraway & Sons had doubled its market share in oat sachets in the past five years.
For bigger bags of oats, the company had about 45% of market share in New Zealand.
At the recent New Zealand Food Awards, Harraway & Sons won a Product Lifetime Achievement Award for its rolled oats.
In a statement, the judges said Harraways Rolled Oats was a truly iconic New Zealand product, which had stood the test of time.
“It has held its place through quality, consistency and trust, becoming a staple in Kiwi households and a symbol of wholesome simplicity.
“Generations have grown up with Harraways and its enduring presence reflects both the strength of the product and the dedication of the people behind it.”
