Ausnutria Dairy has formed a joint venture with New Zealand based Westland to produce and sell dairy based powder products, including infant milk powder.
Through the joint venture named Pure Nutrition, the companies will set up a new manufacturing plant at Rolleston in New Zealand. The plant will produce infant formula and adult nutrition products under Ausnutria’s brands for the Chinese and overseas markets.
The joint venture will be owned 60% by Ausnutria China, a subsidiary of Ausnutria, and 40% by Westland. It will become a subsidiary of the Hong Kong-listed company which will provide it with an investment of up to NZD36.5m ($26.5m).
Initially, Ausnutria will invest NZ$4.5m ($3.3m) in cash while Westland will transfer its land at the site which is said to be worth NZ$3m ($2.2m) for the new infant milk formula blending and canning company.
Ausnutria Dairy Corporation chairman Yan Weibin said: “Establishing the Joint Venture has shown our confidence and determination on infant formula and adult nutrition in Chinese and the global market, and will also lay the foundation of Ausnutria's strategic development in Southeast Asia and Middle East.”
Establishment of the new Rolleston plant is slated to be completed by 2017 end and is designed to give an annual production capacity of 30,000 tons. It will run at half of that capacity in its initial phase.
The plant will be used for both production and sale of dairy based powder products which include infant milk powder, follow-up formulation along with other nutrition products that cater to kids and adults.
Last month, Ausnutria announced that it would acquire Australia-based Nutrition Care at AUD26.4m ($20.2m).
