Bright Dairy and Food completes Synlait investment

11 November 2010

Bright Dairy and Food completes Synlait investment

Synlait Limited is please to confirm that the partnership agreement with one of China’s leaders in dairy and food production, Bright Dairy and Food (Bright Dairy), is now operational following the fulfillment of all regulatory conditions.

The People’s Republic of China earlier this week gave approval for Bright Dairy’s $82 million investment for a 51 per cent shareholding in the processing business of Canterbury’s leading milk processor, Synlait Milk.

The investment will drive Synlait Milk’s value-added export strategy and double production capacity at Synlait’s Dunsandel site south of Christchurch.

Synlait Milk Chief Executive Officer John Penno says construction of the second milk powder processing plant is one third complete and on target for commissioning in September 2011.

Tetrapak is the main contractor for the second processing plant which has specifications to produce 10.5 tonnes of wholemilk powder a day or 8 tonnes of infant formula. The boiler for the plant is being built by RCR Stelform and the construction project is being managed by Babbage Consultants.

“The relationship with Bright Dairy is already providing benefits through access to markets in China, particularly on the eastern seaboard,” Mr Penno says.

“We believe this is the beginning of a partnership that will enable Synlait to further develop its strategy of supplying consumer packaged high value specialist milk powders including infant formula and other functional products. We are already having discussions with a range of other potential customers for these products.”

ENDS

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