Chinese infant formula company Synutra has entered into an agreement with Sodiaal, a leading dairy cooperative in France, and its subsidiary, Euroserum, to build a EUR100m drying facility in Carhaix, France.
Synutra plans to invest EUR90m to build the facility, with the majority of funding for this project expected to come from PRC bank loans, while the remaining will be amount will be invested by Sodiaal.
The facility will produce powdered milk and fat-enriched demineralized whey, which will be used by Synutra to manufacture its infant formula and nutritional products.
It will meet the European quality and hygiene standards and will be capable of producing 60,000 tons of powder per year initially, with a designed capacity of up to 100,000 tons annually.
The drying facility is expected to go onstream by year-end 2014, following which, Euroserum and Sodiaal will supply the facility with demineralized liquid whey and milk. It is expected to employ approximately 75 to 100 employees.
Synutra chairman and CEO Liang Zhang said this industrial and commercial partnership with Sodiaal and Euroserum allows Synutra to secure its long-term supply of high quality raw materials and fuel Synutra's future growth while maintaining the highest quality standard for its products.
This agreement and the construction of the drying facility is subject to the approvals of the government of China.
