Infant formula company Synutra International has signed a long-term industrial and commercial partnership agreement with Sodiaal, the French dairy cooperative, and its subsidiary, demineralised whey powder manufacturer Euroserum.
The agreement will see Synutra build a new drying facility in Carhaix, France (located in the Brittany region), intended to manufacture powdered milk and fat-enriched demineralised whey for the needs of the Synutra group.
Located in the heart of the central Brittany milk-collection basin, Synutra said that the new drying facility will meet the strictest 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.
Synutra anticipates spending approximately 90 million euros ($118 million) to build and operate the drying facility. The operational commissioning of the drying facility is expected to take place by year-end 2014 and, once completed, is expected to employ approximately 75-100 employees. Upon commissioning of the drying facility, Euroserum and Sodiaal will supply the facility with demineralised liquid whey and milk.
"We are very pleased with this industrial and commercial partnership with Sodiaal and Euroserum,” said Liang Zhang, chairman and CEO of Synutra. “This opportunity 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 our products. We are confident this collaborative effort can further increase consumer confidence and trust in our premium nutritional products."
"We are delighted with this long term partnership agreement with Synutra and its investment of a new drying facility in the Brittany region,” said Mr. Francois Iches, chairman of Sodiaal. “This commitment is a strong signal for Sodiaal and our farmers of the long-term commercial relationship between the two groups."