As a result of the agreement, and subject to regulatory and shareholder approval, Bright Dairy and Synlait will become joint owners of Synlait Milk, with Bright Dairy holding a 51% interest. Independent of the partnership and Bright Dairy, Synlait will continue to own and operate the Synlait farms through a separate company.
A key element of the value-added export strategy will be the sourcing of high-quality infant and whole milk powders for Chinese consumers, facilitated by Bright Dairy’s dominant presence in this key growth sector.
Welcoming the partnership, Synlait Milk’s CEO John Penno said work had already begun on building a second large-scale milk powder processing production plant alongside its existing facility, capable of producing high-specification formulated milk powders. The plant will be commissioned in time for the 2011/12 season, more than doubling the capacity of the site.
Bright Dairy’s president Dr Benheng Guo said the investment in Synlait Milk is its first investment in offshore processing facilities.
“In China, the market for premium products from New Zealand and Australia is growing rapidly. Synlait Milk will help Bright Dairy establish a market-leading position in the infant formula and milk powder category with a planned co-branded range.”
Graeme Milne will continue as chairman of Synlait Milk and the existing management of Synlait Milk will run and operate the business.
Source: Synlait Milk
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